HDFC Capital in $1.22-billion deal for affordable housing fund

HDFC, Abu Dhabi Investment Authority commit $1.22 bn

HDFC Capital on Sunday announced that its third fund — HDFC Capital Affordable Real Estate Fund-3 (H-CARE-3) — received a commitment of $1.22 billion from sponsor Housing Development Finance Corporation (HDFC) and Abu Dhabi Investment Authority (ADIA).

In technical parlance, this is an initial close, indicating room for further flow of money into the corpus. Returns from the investments are to be ploughed back into the fund having a life between 12 and 14 years.

Thus, combined with potential reinvestments, the total corpus increases to an estimated $1.88 billion in funds focused on the affordable housing segment.

Meanwhile, HDFC Capital is in talks