Abu Dhabi's ADIA is main investor in $1bn Indian housing funds

Abu Dhabi Investment Authority invests in two funds to provide capital for affordable housing projects
Under construction residential buildings rise into the skyline of Mumbai. (PUNIT PARANJPE/AFP/Getty Images)
By Staff writer
Sat 23 Dec 2017 12:46 AM

Abu Dhabi's sovereign wealth fund has been announced as the primary investor in a new affordable housing fund in India.

Abu Dhabi Investment Authority (ADIA) has supported India’s HDFC Capital Advisors to achieve the initial close of its second affordable housing fund, the HDFC Capital Affordable Real Estate Fund – 2, state news agency WAM reported.

This will be combined with the HDFC Capital Affordable Real Estate Fund – 1, H-CARE-1, which was raised last year, to create a $1 billion platform targeting affordable and mid-income residential projects in 15 cities.

ADIA is the primary investor in both funds, WAM said, citing a statement from HDFC Capital Advisors.

The primary objective of the platform is to provide capital to developers at the land and pre-approval stage for the development of affordable and mid-income housing across India.

Khadem Al Remeithi, executive director of ADIA’s Real Estate and Infrastructure Department, said: "India’s housing market presents a compelling investment opportunity driven by the country’s continued economic growth and backed by supportive government initiatives. Our investment in HDFC’s platform aims to meet the strong demand for early-stage financing of housing projects and encourage the continued growth of the affordable and mid-income residential sector."

Separately, a new business partnership between ADIA and KKR India Financial Services (KIFS) has been announced in Mumbai with ADIA’s decision to become a "significant minority shareholder" in KIFS which offers an alternative credit business in India.

KKR manages multiple alternative classes of assets, including private equity, energy, infrastructure and real estate credit all over the world.

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