New Delhi: HDFC-sponsored real estate fund has been permitted to bring up to Rs 3,240 crore of FDI into the country.
The fund would also raise nearly Rs 135 crore from the domestic market, according to a decision by the Cabinet Committee on Economic Affairs on Thursday.
The Rs 3,240 crore would be raised in the international market for the third fund – HDFC International Real Estate Fund – from the HDFC sponsored HDFC Property Fund, an official spokesperson said after the CCEA meeting in New Delhi.
The international investors would be pooling their investment into a company, India Offshore Real Estate Investments, incorporated in Mauritius, she said.
International lenders to the fund would comprise banks, financial institutions, multilateral agencies and high net worth individuals situated across Europe, North America and Asia.
India Offshore Real Estate Investments would then invest Rs 3,240 crore in the Series A units issued by HDFC International Real Estate Fund.
The units would have a face value of Rs 1,000 each.
HDFC International Real Estate Fund would, in turn, invest in Indian companies, the spokesperson said.
The international scheme of the fund would be managed either by HDFC Venture Capital Ltd or a different entity from within the HDFC Group.
HDFC Property Fund is a Venture Capital Fund, whose investment manager is HDFC Venture Capital Ltd and trustee company is HDFC Ventures Trustee Company Ltd.
The fund was set up in 2005 and has launched two schemes over the last one year.
The first scheme, HDFC India Real Estate Fund has a corpus of Rs 1,000 crore and has invested in commercial, residential, hospitality, integrated township and other associated sectors across the country.
The Rs 464 crore HDFC IT Corridor Fund, the second scheme of the fund, has invested in information technology infrastructure assets across major towns in the country.
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