The Development Bank of Japan (DBJ) has made its first-ever real estate investment in India by investing in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), managed by HDFC Capital Advisors. The move marks a significant step in DBJ’s international investment strategy and highlights growing Japanese interest in India’s financial and real estate sectors.
Although the investment amount has not been disclosed, HDFC Capital stated that the H-DREAM Fund targets affordable and mid-income housing projects with a strong focus on sustainability and green development. The fund aims to raise 500 million US dollars, with an additional greenshoe option of another 500 million dollars, and has already secured commitments exceeding 350 million dollars.
HDFC Capital, one of India’s largest real estate private equity platforms, said the fund is among the first globally to focus on green affordable housing development using the EDGE green building framework. The investment has been routed through HDFC Capital’s offshore feeder structure under the International Financial Services Centres Authority framework at GIFT City in Gujarat.
Deepak Parekh, Non-Executive Chairman of HDFC Capital, described the investment as a strong signal of long-term confidence in India’s real estate market. HDFC Capital CEO Vipul Roongta said the partnership would strengthen sustainable housing development and deepen engagement with global investors.
DBJ stated that the investment would support India’s growing housing needs while helping the Japanese institution diversify its overseas real estate portfolio and gain exposure to one of the world’s fastest-growing markets.
HDFC Capital Secures Japanese Investment for Green Affordable Housing Projects
