(MENAFN - Emirates News Agency (WAM))

MUMBAI, 22nd December 2017 (WAM) – With the support of the Abu Dhabi Investment Authority, ADIA, India's HDFC Capital Advisors, a wholly-owned subsidiary of HDFC Ltd, has achieved the initial close of its second affordable housing fund, the HDFC Capital Affordable Real Estate Fund – 2, it has been announced.

This will be combined with the HDFC Capital Affordable Real Estate Fund – 1, H-CARE-1, which was raised last year, to create a US 1 billion platform targeting affordable and mid-income residential projects in India's leading fifteen cities.

ADIA is the primary investor, through a wholly-owned subsidiary, in both H-CARE-1 and H-CARE-2.

The primary objective of the platform, according to a statement from HDFC Capital Advisors, is to provide long term, equity and mezzanine capital to marquee developers at the land and pre-approval stage for the development of affordable and mid-income housing, in line with the Indian Government's goal of increasing overall housing supply, including the 'Housing for All by 2027' initiative.

For the H-CARE-2 Fund, commitments of US$550 million have been made.

Khadem Al Remeithi, the Executive Director of ADIA's Real Estate and Infrastructure Department, was quoted in the statement as saying, "India's housing market presents a compelling investment opportunity driven by the country's continued economic growth and backed by supportive government initiatives. Our investment in HDFC's platform aims to meet the strong demand for early-stage financing of housing projects and encourage the continued growth of the affordable and mid-income residential sector."

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