Mumbai, Aug. 30: HDFC Ltd has raised $800 million for its international real estate fund, which will be invested in FDI-compliant Indian realty projects. The fund closed today.

The fund makes HDFC the largest player in the real estate private equity space in India, a company release said.

One of the largest international real estate pools, the nine-year close-ended fund was open only to foreign investors.

The fund was privately placed and subscribed by 28 investors.

“The objective of the fund is to invest in FDI-compliant real estate projects in India to achieve long-term capital appreciation. The fund will target equity returns of 20-25 per cent,” said Renu Sud Karnad, chairperson of HDFC Property Ventures.

“Strong industry relationships and unparalleled expertise in the Indian real estate market will give the fund an advantage over similar funds and generate higher returns for investors. The fund will have a conservative approach with no regional or sector bias. It will invest in residential, commercial, hospitality, education and healthcare projects.”

After India’s real estate sector was opened up to foreign investors, many have shown an active interest.

According to HDFC, as demonstrated by other more developed economies in Asia and South America, a key beneficiary and driver of India’s economic growth will be the real estate sector.

Officials said the Indian real estate market presented a very compelling investment opportunity for investors.