Key Takeaways
- • Sumitomo Mitsui Trust Bank (SuMiTB) has committed capital to HDFC Capital's H-DREAM Fund, marking its first investment in an Indian real estate fund, announced November 6.
- • H-DREAM Fund targets a $500 million corpus with a $500 million greenshoe option and has secured investor commitments of more than $400 million, according to the companies.
- • The investment is made through an offshore feeder fund structure under the IFSCA framework at GIFT City.
- • The fund finances affordable and mid-income residential projects that must meet the EDGE green building standard and adopt IFC Environmental and Social Performance Standards.
- • HDFC Capital Advisors, the real estate private equity arm of HDFC Group and a subsidiary of HDFC Bank, manages a platform of around $5 billion.
Summary
Sumitomo Mitsui Trust Bank (SuMiTB), a Japanese financial institution, has committed capital to the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), according to CNBC TV18. The investment, announced on November 6, marks SuMiTB's first investment in an Indian real estate fund and its entry into India's real estate fund market.
The commitment was made through HDFC Capital Advisors' offshore feeder fund structure, established under the International Financial Services Centres Authority (IFSCA) framework at Gujarat International Finance Tec-City (GIFT City). H-DREAM Fund is managed by HDFC Capital Advisors and has a target corpus of $500 million, with an additional $500 million greenshoe option. According to the companies, the fund has secured investor commitments of more than $400 million to date.
The fund provides financing to residential real estate projects focused on affordable and mid-income housing. Financed projects are required to follow the Excellence in Design for Greater Efficiencies (EDGE) green building framework. The fund has also adopted the International Finance Corporation's (IFC) Environmental and Social Performance Standards to incorporate environmental and social considerations into its investments.
HDFC Capital Advisors is the real estate private equity arm of the HDFC Group and a subsidiary of HDFC Bank. Its funds together represent a platform of around $5 billion. SuMiTB said the commitment would serve as the foundation for a longer-term relationship with HDFC Capital and the broader HDFC Group. SuMiTB, established in 1925, is Japan's largest trust bank, with $2.1 trillion in assets under custody and $1.2 trillion in assets under management, according to the company.
The commitment was made through HDFC Capital Advisors' offshore feeder fund structure, established under the International Financial Services Centres Authority (IFSCA) framework at Gujarat International Finance Tec-City (GIFT City). H-DREAM Fund is managed by HDFC Capital Advisors and has a target corpus of $500 million, with an additional $500 million greenshoe option. According to the companies, the fund has secured investor commitments of more than $400 million to date.
The fund provides financing to residential real estate projects focused on affordable and mid-income housing. Financed projects are required to follow the Excellence in Design for Greater Efficiencies (EDGE) green building framework. The fund has also adopted the International Finance Corporation's (IFC) Environmental and Social Performance Standards to incorporate environmental and social considerations into its investments.
HDFC Capital Advisors is the real estate private equity arm of the HDFC Group and a subsidiary of HDFC Bank. Its funds together represent a platform of around $5 billion. SuMiTB said the commitment would serve as the foundation for a longer-term relationship with HDFC Capital and the broader HDFC Group. SuMiTB, established in 1925, is Japan's largest trust bank, with $2.1 trillion in assets under custody and $1.2 trillion in assets under management, according to the company.
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