Mumbai: Housing lender HDFC on 30 August announced closing of its first sponsored HDFC International Real Estate Fund (HIREF) at $800 million, that would be invested in FDI-compliant Indian realty projects.
The fund makes HDFC the largest player in the real estate private equity space in India, a company release said.
One of the largest international real estate pools, the nine-year close-ended fund, that was open only to foreign investors had been privately placed and subscribed by 28 investors.
“The objective of the fund is to invest in FDI compliant real estate projects in India to achieve long-term capital appreciation. The fund will target equity returns of 20-25%,” HDFC Property Ventures Chairperson Renu Sud Karnad said in the release.
Devoid of regional or sector bias, the fund would have a conservative approach and would invest in residential, commercial, hospitality, education, healthcare and developers’ entity level.
HDFC Property Ventures Managing Director K G Krishnamurthy said the fund’s strategy was to invest in these companies and manage its funds in a manner that enables realty developers to harness growing Indian economy and develop profitable ventures.