HDFC to set up fund to finance stressed realty projects, to rope in partner

The financial institution will put the money as investment in the proposed fund and will rope in a partner for real estate fund financing of distressed assets in the real estate sector

Housing Development Finance Corporation (HDFC) will use part of the fresh capital it plans to raise to set up a real estate fund, in collaboration with other investors, to finance stressed projects.

It will also use the fresh capital to fund inorganic opportunities and investments in existing group businesses, its Vice Chairman and Chief Executive Officer Keki Mistry said.

HDFC is yet to approach shareholders to seek their approval to raise funds. The exercise will be conducted soon after the approval is received, said Mistry.

Mistry said, “These investments will continue to be in the financial sector, which is the core business. One