Key Takeaways
- • Japan's Sumitomo Mitsui Trust Bank (SuMiTB) made its maiden investment in the Indian realty sector, committing an undisclosed sum to HDFC Capital's H-DREAM Fund, according to an official statement reported by PTI.
- • The H-DREAM Fund (HDFC Capital Development of Real Estate Affordable and Mid-Income Fund) is targeting up to USD 1 billion and currently has investor commitments topping USD 400 million.
- • HDFC Capital Advisors, which focuses on affordable and mid-income residential real estate, runs a USD 5 billion platform across funds.
- • SuMiTB's Riro Sato described the investment as the foundation of a long-term relationship with HDFC Capital and the broader HDFC Group.
- • The investment was made through an offshore feeder fund structure established under the International Financial Services Centres Authority framework at Gujarat International Finance Tec-City (GIFT City).
Summary
Japan's Sumitomo Mitsui Trust Bank, Limited (SuMiTB) announced on Friday its maiden investment in the Indian realty sector, committing an undisclosed sum in a fund promoted by HDFC Capital, the realty-focused private equity arm of the HDFC financial services group, according to PTI and an official statement.
The investment was made in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), which is targeting up to USD 1 billion. Investor commitments in the fund currently exceed USD 400 million, the statement said. HDFC Capital Advisors, which concentrates on affordable and mid-income residential real estate, manages a USD 5 billion platform across funds.
Riro Sato, Director and Senior Managing Executive Officer at SuMiTB, said: "This investment represents our first commitment to an Indian real estate fund and marks an important milestone for us. We see it as the foundation of a long-term relationship with HDFC Capital and the broader HDFC Group."
HDFC Capital's chief executive Vipul Roongta said the partnership reinforces the growing economic and investment relationship between India and Japan. He added that patient, long-term capital has an important role to play in supporting the development of sustainable housing and resilient urban communities.
The investment was routed through HDFC Capital's offshore feeder fund structure, established under the International Financial Services Centres Authority framework at Gujarat International Finance Tec-City, the statement said.
The investment was made in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), which is targeting up to USD 1 billion. Investor commitments in the fund currently exceed USD 400 million, the statement said. HDFC Capital Advisors, which concentrates on affordable and mid-income residential real estate, manages a USD 5 billion platform across funds.
Riro Sato, Director and Senior Managing Executive Officer at SuMiTB, said: "This investment represents our first commitment to an Indian real estate fund and marks an important milestone for us. We see it as the foundation of a long-term relationship with HDFC Capital and the broader HDFC Group."
HDFC Capital's chief executive Vipul Roongta said the partnership reinforces the growing economic and investment relationship between India and Japan. He added that patient, long-term capital has an important role to play in supporting the development of sustainable housing and resilient urban communities.
The investment was routed through HDFC Capital's offshore feeder fund structure, established under the International Financial Services Centres Authority framework at Gujarat International Finance Tec-City, the statement said.
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