Development Bank of Japan ( DBJ ) has made its first real estate investment in India, committing capital to HDFC Capital Development of Real Estate Affordable and Mid-Income Fund ( H-Dream Fund ), which is managed by HDFC Capital Advisors Limited, the real estate private equity arm of the HDFC Group.

HDFC Capital is one of India’s largest real estate private equity funds, with a focus on affordable and middle-income residential real estate. Its funds are currently in excess of US$4.5 billion. The H-Dream Fund aims to raise US$500 million, with a greenshoe of US$500 million. So far, investors have committed over US$350 million in the fund.

DBJ’s investment in H-Dream Fund marks a significant milestone in the Japanese financial institution’s international investment strategy.

H-Dream Fund finances projects that prioritize affordable and mid-income housing, while implementing the Excellence in Design for Greater Efficiencies ( EDGE ) green building framework, in line with global sustainability standards.

Deepak Parekh, non-executive chairman of HDFC Capital, comments: “The India-Japan relationship is a trusted partnership based on strong institutional cooperation. India has seen increased participation by Japanese investors in its financial and real estate sectors. As a government-owned institution, DBJ’s first investment in real estate in India is significant for us and reinforces long-term investor confidence in the country.”

DBJ’s investment in H-Dream Fund is made through HDFC Capital’s offshore feeder fund structure, established under the International Financial Services Centres Authority framework at Gujarat International Finance Tec-City ( GIFT City ), India’s international financial hub.