HDFC And ADIA To Back Affordable Housing Projects With $500 Million Funding
One billion dollar investment platform and country’s largest mortgage lender HDFC and Abu Dhabi’s sovereign fund Abu Dhabi Investment Authority (ADIA) will jointly fund a $500 Million for housing projects for mid-income and affordable mid-income category across the country by March. The platform has recognized some housing projects for funding in, Bengaluru, Mumbai, Kolkata, Gurgaon, Chandigarh, and Rajasthan. And these projects will be developed by some of the renowned realty companies such as Mahindra LifeSpace Developers, Godrej Properties, Signature Global, Radius Developers, Rustomjee Group, and Acme Group.
HDFC Chairman, Deepak Parekh said, “Our venture is to take part in the big opportunity of affordable housing. This is a promising segment and it will continue to grow for many years due to a huge requirement of houses. The government’s plans to provide a home for all by 2022 will not only help the real estate industry in the country but also motivate the GDP growth.
There is a prospect of more than 25,000 homes in these projects. The total area of these houses will be between 300 to 800 square feet. In these projects, the investment will be funded through HDFC Capital Advisors Fund.
HDFC Capital Advisors recently received $55 Million in the biggest ever effort to raise funds for affordable and mid-income housing. This fund was mobilized under its second Affordable Housing Fund, HDFC Capital Affordable Real Estate Fund, 2 (H-CARE-2).
With this fund, together with the HDFC Capital Affordable Real Estate Fund, 1 (H-CARE-1) bagged in 2016, a $1 Billion platform has been created for investment in affordable and mid-income housing projects in the top 15 cities of the country. This platform will play an important role in fulfilling the purpose of making the home available to all by 2022.
Head of this platform is Vipul Rungta, CEO of HDFC Capital Advisors.
This platform will emphasize on providing attractive financing to the major developers and financing on easy terms. Financing will be available from purchasing land until completion of the project. In addition to financing projects, HDFC will also offer help in the project of Capital Project, Branding and Sales Process.
For these funds, HDFC Sponsor and HDFC Capital Advisors will be Investment Managers. The goal of these funds is to invest in 7.5 crore square feet of mid-income and affordable housing projects spread over two-three years.
The executive director of the real estate and infrastructure department, ADIA, Khadem Al Remeithi said, “The housing market of India offers a convincing investment opportunity that is driven by country’s constant growth and government initiatives.”