The National Investment and Infrastructure Fund (NIIF) of India is pleased to announce an investment of INR 660 crore in HDFC Capital Affordable Real Estate – 2 (H-CARE 2), an investment platform, managed by HDFC Capital Advisors, a wholly owned subsidiary of HDFC Ltd.
The agreement, which marks the second investment for NIIF’s Fund of Funds, will see NIIF join a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) as an investor in H-CARE 2.
Sujoy Bose, MD & CEO, NIIF, said: “Housing remains a critical need in India and the demand for housing is expected to grow substantially with increased urbanization. This demand, in conjunction with reforms implemented in the sector creates an attractive investment opportunity for disciplined developers and knowledgeable investors. NIIF is excited to partner with HDFC to invest into this sizable opportunity. This investment enables investors in the NIIF Fund of Funds to participate in the attractive mid income and affordable housing sector in India”.
Deepak Parekh, Chairman, HDFC Ltd said, “H-CARE 2 now has a wider platform targeting affordable and mid-income residential projects in India and will play a significant role in progressing towards the government’s flagship programme, ‘Housing for All by 2022’. Our partnership with NIIF is also recognition that housing is a catalyst for GDP growth. The current lack of flexible, long-term capital is one of the key challenges facing developers of affordable and mid income housing in India. This Fund will help address the demand-supply gap in affordable housing and will ensure that flexible financing is provided to quality developers”.
