HDFC Closes First International Realty Fund At $800 Mn

HDFC BankMumbai: The Housing Lender HDFC today announced closure of its first sponsored HDFC International Real Estate Fund (HIREF) at $800 million, which would be invested in FDI-compliant Indian real estate plans.

According to a company release, the fund makes HDFC the biggest player in the realty private equity space in India.

One of the prime international realty 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 per cent," HDFC Property Ventures Chairperson Renu Sud Karnad said in the release.

Lacking regional or sector bias, the fund would have a cautious approach and would invest in residential, profitable, hospitality, training, healthcare and developers' entity level.

K G Krishnamurthy, HDFC Property Ventures Managing Director stated the fund’s plan was to invest in these companies and handle its funds in a way that lets real estate developers to rule rising Indian economic system and build up profitable ventures.