New Delhi, May 28 -- Development Bank of Japan Inc. (DBJ) has committed capital to a real estate private equity fund managed by HDFC Capital Advisors, marking its maiden investment in India's property sector.
The Japanese lender has invested in HDFC Capital's Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), the companies said in a statement. They didn't disclose the amount.
H-DREAM Fund has a target corpus of $500 million with a greenshoe option of an equal amount, with current investor commitments exceeding $350 million.
HDFC Capital, the real estate private equity arm of the HDFC Group, says the fund finances projects that prioritise affordable and mid-income housing, while implementing the green building framework, in line with global sustainability standards. The firm, which manages over $4.5 billion across its funds, last year secured a commitment of up to $150 million from International Finance Corporation (IFC) as an anchor investor in H-DREAM.
"India has seen increased participation by Japanese investors in its financial and real estate sectors. As a government-owned institution, DBJ's first investment in real estate in India is significant for us and reinforces long-term investor confidence in the country," said Deepak Parekh, non-executive chairman, HDFC Capital.
The DBJ is a Japanese financial institution that provides integrated investment and loan services to companies and projects. It traces its origins to Japan Development Bank and Hokkaido-Tohoku Development Finance Public Corporation, established in 1951 and 1956, respectively, and was reorganized as DBJ in 2008.
Headquartered in Tokyo, the DBJ supports sustainable development in Japan and around the world through a broad range of financial solutions, including long-term loans, mezzanine financing and equity investments. The bank is wholly owned by the Japanese government and operates subsidiaries in Singapore, London, Beijing and New York.
HDFC Capital is one of India's largest real estate private equity funds and is led by CEO Vipul Roongta. Late last year, it formed a partnership with Brigade Enterprises Ltd and Gruhas PropTech LLP's Earth Fund, a proptech fund. Earlier this year, it formed a partnership with Curated Living Solutions to establish a Rs 1,000 crore rental housing platform to develop, own and operate institutional-grade rental housing assets.
Published by HT Digital Content Services with permission from VC Circle.