Development Bank of Japan Partners with HDFC Capital for Affordable Housing in India
The Development Bank of Japan (DBJ) has made its first real estate investment in India through a partnership with HDFC Capital, a leading real estate private equity fund in the country.
Multi-Billion Dollar Investment to Support Affordable Housing
As part of the agreement, DBJ will invest in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), which has a target corpus of $1 billion for the construction of affordable and mid-income housing projects in India.
- The H-DREAM Fund has a target fund corpus of $500 million with a greenshoe of $500 million.
- Current investor commitments exceed $350 million.
- Other notable investors include the International Finance Corporation (IFC), which has committed up to $150 million as an anchor equity investment.
Significance of the Investment
DBJ's investment in H-DREAM Fund marks a significant milestone in the India-Japan relationship, with a focus on sustainable development and affordable housing.
Deepak Parekh, Non-Executive Chairman, HDFC Capital, said, "The India-Japan relationship is a trusted partnership based on strong institutional cooperation. India has seen increased participation by Japanese investors in its financial and real estate sectors."
Partnership Structure
The investment will be made through HDFC Capital's offshore feeder fund structure, established under the International Financial Services Centres Authority (IFSCA) framework at the Gujarat International Finance Tec-City (GIFT City).
Vipul Roongta, CEO, HDFC Capital, said, "We are delighted to partner with DBJ in its first real estate investment in India. HDFC Capital's focus on early-stage financing for quality affordable and mid-income housing positions it well to deepen engagement with investors committed to diversification and sustainable development."
Impact on the Indian Real Estate Market
DBJ's investment is expected to support the sustainable development of the Indian real estate market, which is facing a housing shortage.
The partnership highlights HDFC Capital's commitment to affordable and mid-income housing, with a focus on green and sustainable development.
Key Highlights:- DBJ's first real estate investment in India.
- Partnership with HDFC Capital for affordable and mid-income housing.
- Target corpus of $1 billion for affordable housing projects.
- Investment made through HDFC Capital's offshore feeder fund structure.