Mortgage giant HDFC Ltd has set up a new Alternative Investment Fund for affordable real estate with a total target size of Rs 5,000 crore, wherein investors have committed Rs 2,700 crore for the first tranche itself.
The tenure of the said fund will be 12 years and it will invest in the long-term equity of mid-income housing, HDFC said in a regulatory filing.
HDFC Capital Advisors Limited, a wholly owned subsidiary of HDFC Ltd, has been appointed as the investment manager for the fund, named HDFC Capital Affordable Real Estate Fund-1 (HCARE-1).
HCARE-1 is a Sebi-registered Alternative Investment Fund (AIF) and has been sponsored by HDFC Ltd.
HDFC further said that the fund has received an aggregate commitment for an amount of Rs 2,700 crore from various investors.
"One of the key objectives of HCARE-1 is to primarily make medium to long-term investments towards development of mass housing where the residential units would be priced in a manner so as to cater to the residential demand of the urban middle-income households," it added.
The targeted fund size is approximately Rs 5,000 crore and the first close will be Rs 2,700 crore, HDFC said.
