Japanese real estate company Hulic Co Ltd and HDFC Capital Advisors Ltd, the real estate private equity arm of the HDFC Group, have made their first investment through their joint senior secured debt platform for residential housing development in India. According to reports from Business Standard, the investment is in a residential development project located in western Mumbai, with the companies stating that the project is expected to benefit from its connectivity and proximity to established commercial and employment hubs.
The companies did not disclose the size of the investment or the name of the project, as reported by Business Standard. However, they emphasized that India's residential market is expected to deliver strong long-term growth, supported by urbanisation, better job opportunities and rising household incomes. The companies added that demand for middle-income housing in metropolitan areas remains resilient, positioning this investment as part of their strategic expansion into India's residential real estate sector.
Sohei Okuno, managing officer and general manager, Global Investment Department, Hulic, expressed delight at participating alongside HDFC Capital, calling it a unique investment opportunity that aligns closely with Hulic's investment strategy. According to Business Standard, Okuno believes that residential assets in India will continue to benefit from robust underlying demand, supported by the country's young demographics and economic expansion. Vipul Roongta, chief executive officer, HDFC Capital, highlighted the strategic Japan-India relationship and the ambitious target of JPY 10 trillion of Japanese private investment into India over the next decade.
As reported by Business Standard, HDFC Capital is the investment manager to multiple alternative investment funds (AIFs), which combine to create a platform of $5 billion. The company has launched India's first single-city real estate PE platform focusing on the Mumbai Metropolitan Region (MMR) and has secured Hulic as the anchor investor. Hulic has a portfolio of offices, commercial facilities and hotels, located mainly in central Tokyo, and the companies intend to further strengthen their relationship and explore additional opportunities for collaboration in India's residential real estate sector.
