DBJ Partners with HDFC Capital for $1B Affordable Housing Fund

The Development Bank of Japan has partnered with HDFC Capital Advisors to invest in a real estate fund focused on supporting affordable and mid-income housing development across India.

The investment is structured through the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), which has a total targeted corpus of USD 1 billion, comprising a USD 500 million base corpus and a USD 500 million greenshoe option. According to HDFC Capital, this marks the Development Bank of Japan’s first real estate investment in India through the fund, although the investment amount has not been disclosed.

Current commitments to the fund exceed USD 350 million. Earlier investors include the International Finance Corporation, which had committed up to USD 150 million as anchor equity.

HDFC Capital, the real estate private equity arm of the HDFC Group, manages one of India’s largest real estate investment platforms with cumulative funds exceeding USD 4.5 billion. The H-DREAM Fund is focused on green, affordable, and mid-income housing projects, aiming to address India’s housing demand while promoting sustainable and inclusive urban development.

News by Rahul Yelligetti.