The Tokyo-headquartered Sumitomo Mitsui Trust Bank (SuMiTB) has invested in HDFC Capital Development of Real Estate Affordable and MidIncome Fund (H-DREAM Fund).
H-DREAM Fund is a residential real-estate development fund in India managed by HDFC Capital Advisors.
HDFC Capital is a real-estate asset management company belonging to the HDFC Group. The company largely focusses on financing the middle-income housing segment in India.
The fund, which is focussed on financing development projects for affordable and mid-income housing, is targeting a corpus of Rs 4,250-8,500 crore (JPY 70.1-140.2 billion or $450.5-901 million).
“This investment is aimed at fostering collaboration with HDFC Capital and the HDFC Group throughout a wide range of fields and creating new financial businesses in India by leveraging the group’s expertise and network,” HDFC Capital said in a press note.
This is the Japanese firm’s second cheque as a limited partner to an Indian alternative investment fund within a week. Last week, it backed One Planet Partners, a private equity fund set up by former executives of Tata Group, Blackstone and McKinsey.
HDFC Capital manages multiple category-II alternative investment funds (AIFs) registered with the Securities and Exchange Board of India (SEBI) and the International Financial Services Centres Authority (IFSCA). The total investment platform across the funds managed by HDFC Capital amounts to nearly $5 billion.
On the other hand, SuMiTB is focussing on investing and financing real assets. These include social and industrial infrastructure assets such as energy and shipping infrastructure, real estate and aircraft.