HDFC pushes $ 1-bn in affordable housing

Ensuring sufficient funding flow to the low cost housing sector, HDFC Capital has raised $1 billion to create a real estate fund that would invest in affordable and mid-income housing projects in the top 15 cities of the country. In may be recalled that in 2016, HDFC's arm HDFC Capital Advisors had raised $450 million in its first fund for affordable housing and has now raised $550 million in the second fund, taking the total size to $1 billion, making it one of the biggest fundraising exercises in this segment. HDFC is the sponsor of the fund and Abu Dhabi Investment Authority (ADIA) is a major investor. HDFC Capital Advisors has successfully achieved the initial close of second affordable housing fund 'HDFC Capital Affordable Real Estate Fund 2. The second fund will be combined with the HDFC Capital Affordable Real Estate Fund1 raised in 2016 to create a $ 1 billion platform for the segment, HDFC Chairman Deepak Parekh said, elaborating that these funds will play a significant role in achieving the 'Housing for All' by 2022 objective of the government.