HDFC raises $800 m overseas for realty

Mumbai, Aug 30 | Updated: Aug 31 2007, 04:54am hrs
Housing lender HDFC on Thursday announced the closing of its first sponsored HDFC International Real Estate Fund (HIREF) at $800 million that would be invested in FDI-compliant Indian projects.

The fund made 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, which 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.

Through strong industry relationships and unparalleled expertise in the Indian real estate market, the fund expects to have a competitive advantage over similar funds and generate enhanced returns for investors.

The fund will have a conservative approach with no regional or sector bias and would invest in residential, commercial, hospitality, education and healthcare sectors, Karnad added

HDFC Property Ventures managing director KG Krishnamurthy said the funds strategy was to invest in companies involved in these businesses and manage its funds in a manner that enabled realty developers to harness the growing Indian economy and develop profitable ventures.