HDFC Prospers from Indian Real Estate Investment
HDFC Property Fund, a part of financial sector conglomerate HDFC, is responsible for raising $250 million (over 1500 crores) by investing in residential properties across Indian cities and obtaining revenue from marquee international Investment Investors. This marks the closure of the second international HDFC real estate fund, and the first fund of $800 million procured in 2007 has been fully utilised.
The multiplying assets under the management of HDFC property fund exceeds $1 billion. According to market experts, the aim of HDFC is to ultimately revive itself in the real estate market by cashing in on residential properties and launching property funds.
This year a number of fund managers including Piramal Fund Management, IIFL, and IDFC have contributed to raising money that is to be deployed in the Indian real estate sector. According to the Ajay Piramal-led Fund Management, they have raised Rs 100 crore in July 2014 that is to be to put to developing residential real estate investments in tier-I and tier-II cities.
In January, the multi-asset management platform driven by IDFC called IDFC Alternatives, has also raised Rs 750 crore to provide debt alternatives and backing for residential properties. IIFL, the wealth management unit of the brokerage firm India Infoline, was responsible for raising Rs 735 crore for a realty fund used for further residential investments.
Hence, the HDFC Property Fund is to be employed for the sole purpose of investing in residential properties, which is an added bonus to the Indian real estate sector due to the increasing demands for housing options all over the country.
Source: Financial Express
HDFC Property Fund, HDFC real estate fund, IDFC, IIFL, Piramal Fund Management, Piramal-led Fund Management
