DBJ Partners with HDFC Capital to Drive Affordable Housing Growth in India
The Development Bank of Japan (DBJ) has joined forces with HDFC Capital to propel the growth of India's affordable and mid-income housing sector.
Collaborative Efforts for Sustainable Development
- The partnership aims to establish a real estate fund with a corpus of $1 billion for sustainable development projects.
- DBJ's involvement marks its inaugural real estate investment in India, joining the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund).
- The H-DREAM Fund currently has investor commitments exceeding $350 million, targeting a total fund size of $500 million with an equivalent greenshoe option.
Japanese Investor Confidence in Indian Markets
Deepak Parekh, HDFC Capital's Non-Executive Chairman, stressed the strategic importance of this partnership and the growing interest of Japanese investors in Indian markets.
DBJ's involvement reflects confidence in India's long-term real estate potential and ongoing efforts to alleviate the housing shortage in the country.
Significance of DBJ's Participation
- HDFC Capital highlighted the significance of DBJ's participation, emphasizing the fund's focus on early-stage financing for affordable housing within India's vibrant market.
- The collaboration is structured under the International Financial Services Centres Authority (IFSCA) framework at GIFT City.
Partnership Highlights
- Target Fund Corpus: $1 billion
- Investor Commitments: Over $350 million
- Target Fund Size: $500 million with an equivalent greenshoe option