HDFC Property Fund, a part of financial sector conglomerate HDFC group, today said it has raised USD 250 million (over Rs 1,500 crore) for investing in residential property in major cities across India.
"The fund-raising exercise has been concluded with investments from marquee international institutional investors and marks closure of HDFC's second international real estate fund," it said in a statement.
"The fund plans to focus on investing primarily in residential property developments in major cities across India," it added.
This is HDFC's second international real estate fund. HDFC had raised an international fund of USD 800 million in 2007 which has been fully deployed.
The cumulative assets under management of HDFC Property Fund exceed USD 1 billion.
Markets experts said a host of fund managers are gearing up to launch property funds aiming to cash in on the bull run in the market and hoping for a potential revival in the real estate market.
So far this year, a number of fund managers including Piramal Fund Management, IIFL and IDFC have raised money to be deployed on the realty sector.
In July this year, the Ajay Piramal-led Piramal Fund Management had said that it has raised Rs 100 crore in a fund, which will be focusing on residential real estate investments.
In the beginning of the year, IDFC Alternatives, the multi-asset management platform promoted by IDFC, has also raised Rs 750-crore to provide debt support to residential projects.
Moreover, IIFL, the wealth management arm of brokerage firm India Infoline, had also raised Rs 735 crore for a realty fund.
