HDFC Capital Advisors held a first close on its second affordable housing fund at $550 million, the firm announced in a press release. The Mumbai, India-based firm said it would combine the capital raised in this vehicle with that of the firm’s debut housing fund from 2016, raising HDFC’s total investment pool to $1 billion.
Deploying the combined funds, HDFC plans to provide equity and mezzanine capital to affordable housing developers in India, aligning with the government’s efforts to increase the housing supply for low-income residents.
“These funds will play a significant role in progressing towards the ‘Housing for All by 2022’ objective of the government,” said Deepak Parekh, HDFC’s chairman, in the press release. “Affordable housing will not only act as a growth driver for the real estate industry in India but will also be a catalyst for GDP growth.”
The Abu Dhabi Investment Authority (ADIA), the world’s second largest sovereign wealth fund, is the primary limited partner of the merged funds.