HDFC Property Fund makes final close of new offshore fund at $250M

HDFC Property Fund, the real estate investment arm of HDFC Group, has hit the final close of its second international fund at $250 million (or Rs 1500 crore), the company said in a statement.

“The fundraising exercise has been concluded with investments from marquee international institutional investors and marks closure of HDFC's second international real estate fund,” it said.

The fund will chase investments in residential properties across major cities in India.

This marks the second international fund of the company. The first international fund with a corpus of $800 million was raised in 2007 and it is fully deployed now.

The fund had launched two domestic real estate funds in 2005—one with a corpus of Rs 1000 crore and another of Rs 464.4 crore size. The first fund has been substantially exited while the second is fully exited now.

The asset under management (AUM) of HDFC Property Fund is in excess of $1 billion now.

Although realty funds have struggled to raise money overseas, a small clutch of firms have hit fundraising milestones abroad in the last few months.

Kotak Investment Advisors reached final close for its second offshore fund at $400 million two months ago. It attracted commitment from large sovereign and pension funds. Early this year, ASK Group announced the first close of its $200 million offshore real estate focused fund at $50 million.

The biggest development to watch out in the field is the upcoming fund of Red Fort Capital. The firm is chasing to raise $750 million-$1 billion. This will be its third real estate dedicated offshore fund and mark a record amount as the target for any single realty fund to date.

(Edited by Joby Puthuparampil Johnson)

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