Housing Development Finance Corporation Ltd (HDFC), on Thursday, announced the closing of its first sponsored international Real-Estate Fund, HIREF International LLC (the Fund) at US$800 million.
With this, HDFC successfully made one of country’s largest international real estate funds subscribed to by 28 foreign investors. The nine-year close-ended fund was privately placed and open for subscription from only foreign investors, HDFC said.
HDFC Property Ventures Ltd Chairperson & HDFC Executive Director Renu Sud Karnad said, “the objective 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.”
Ms Karnad said the fund expects to have a competitive advantage over similar funds and generate enhanced returns for investors.  “The fund will have conservative approach with no regional or sectoral bias and invest in residential, commercial, hospitality, education, healthcare sectors and developers' entity level.”
“The fund believes that the Indian real estate market presents a very compelling investment opportunity for investors.”