Development Bank of Japan Inc. (DBJ) has made its first real estate investment in India by committing capital to the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), managed by HDFC Capital Advisors Ltd, according to livemint.com. The investment amount was not disclosed. The H-DREAM Fund targets a corpus of $500 million, with an additional $500 million green-shoe option, and currently has investor commitments exceeding $350 million.
DBJ’s entry into the Indian real estate sector comes through its partnership with HDFC Capital, the real estate private equity arm of HDFC Group. The H-DREAM Fund focuses on financing projects that prioritize affordable and mid-income housing. The fund aims to raise long-term capital from both international and domestic institutional investors to support its objectives, livemint.com reported.
This investment marks a significant step for DBJ, reflecting growing international interest in India’s affordable housing market. The sector has attracted increasing capital as demand for affordable and mid-income housing rises amid urbanization and government incentives. The H-DREAM Fund’s target corpus and green-shoe option position it among notable real estate funds focusing on this segment, highlighting the potential for sustained investment flows.
HDFC Capital plans to continue raising capital for the H-DREAM Fund to meet its $500 million target and utilize the green-shoe option if needed. The fund’s progress in securing commitments and deploying capital into affordable housing projects will be key milestones to watch, as it aims to address housing needs while offering returns to investors, livemint.com noted.