HDFC Capital raises $376 million for a fund to support affordable housing.

MUMBAI: HDFC Capital, the estate private equity arm of HDFC Group, announced the initial close of its third fund’s second scheme on Monday, raising USD 376 million.

The latest fundraising effort is the third by HDFC Capital’s reasonably priced real estate fund (H-Care 3), and the primary investor in the H-Care schemes is an Abu Dhabi Investment Authority (ADIA) wholly-owned subsidiary, according to a statement from HDFC.

The fund will provide long-term, flexible funding for affordable and middle-income housing projects throughout their life cycle, including early-stage funding. It will also invest in companies involved in the affordable housing ecosystem, such as construction technology, fintech, and sustainability tech.

HDFC Capital targets to finance 10 lakh affordable homes through a combination of financing, partnerships and technology while focusing on sustainability. While HDFC is the fund’s sponsor, HDFC Capital is the scheme’s investment manager, according to HDFC Capital managing director Vipul Roongta.

HDFC Capital was a pioneer in investing in low- and middle-income housing projects. HDFC Capital is well on its way to achieving its medium-term goal of funding 1 million affordable homes in the country, according to HDFC chairman Deepak Parekh, with the support of leading global investors such as ADIA and partnerships with trusted developers.

“Our latest investment in the H-Care platform aims to encourage its growth as it continues to meet India’s growing demand for early-stage financing of housing projects,” said Mohamed Al Qubaisi, ADIA’s executive director, real estate department.