New Delhi, Sept. 1 -- Japanese developer Hulic Co., Ltd. and HDFC Capital Advisors Limited (HDFC Capital), the real-estate investment arm of the HDFC Group, have made their first investment from their joint platform for development of residential housing in India, the companies said in a statement.
The statement said the investment has been made in a residential development in western Mumbai, but it did not give further details on the name of the project or the size of the investment made. The statement added that the project is expected to benefit from proximity to established commercial and employment hubs.
With the platform, which has been set up for senior, secured debt investments, both parties intend to explore additional opportunities for collaboration within India's residential realty sector.
"We believe residential assets in India will continue to benefit from robust underlying demand, supported by the country's young demographics and economic expansion. This transaction represents a unique investment opportunity that aligns closely with Hulic's investment strategy", said Sohei Okuno, managing officer and general manager, global investment department, Hulic.
"The Japan-India relationship is strategic and growing stronger. Both governments deserve credit for setting an ambitious target of JPY 10 trillion of Japanese private investment into India over the next decade, reflecting the confidence in India's long-term growth story," said Vipul Roongta, chief executive officer, HDFC Capital.
Hulic is a Japanese listed real-estate developer with a portfolio of offices, commercial facilities and hotels, located mainly in central Tokyo. As part of its international business, the company is investing in assets in areas with economic and population growth such as the United States and Asia.
HDFC Capital manages more than $5 billion across multiple alternative investment funds focussed primarily on affordable and mid-income housing. The firm has been expanding into adjacent residential segments, including student housing, industrial worker housing and senior living.
Recently, Primus Senior Living Pvt Ltd, a Bengaluru-based company, which counts global venture capital firm General Catalyst and Zerodha co-founder Nikhil Kamath as investors, teamed up with HDFC Capital to set up a Rs 2,000-crore ($207 million) investment platform to develop senior living communities across India.
Previously, Development Bank of Japan Inc. (DBJ) committed capital to a real-estate private equity fund managed by HDFC Capital Advisors, marking its maiden investment in India's property sector.
Published by HT Digital Content Services with permission from VC Circle.