Housing Development Finance Corporation Limited (‘HDFC’) introduced the concept of housing mortgage in India over three decades ago and has grown since to be a premier financial institution. It has turned the concept of selling mortgages into a profitable, professionally managed and world-class enterprise. The trust that HDFC’s customers and providers of capital have placed in it over the years has almost become legendary in the Indian corporate world. It has cumulatively disbursed home loans of over Rs 5.5 trillion (USD 91 billion) assisting 4.7 million families own a home of their own as of date.
In fact, it not only retains its dominant position in the housing mortgage sector but continues to be the market leader in developer financing. HDFC’s gross Non Performing Assets (NPAs) have on an average been less than 1%, the lowest in the industry. The total write offs since inception has been 0.04% of cumulative disbursements.
Total assets of HDFC as on March 31st, 2014 were Rs. 2.26 trillion (USD 37 billion). HDFC’s success in the mortgage industry and its spread across the financial services industry has made it a financial conglomerate with presence in banking, life insurance, non-life insurance, asset management , real estate fund and education finance.
The Fund Managers
In 2005 the real estate sector was opened up to private equity investment. HDFC, with over three decades of experience in the industry felt that it was an opportune time to tap its depth of knowledge and long term relationships in the real estate sector, to help investors take an exposure to the growing Indian real estate sector. Accordingly, HDFC entered the private equity business with HDFC Property Fund.
HDFC Venture Capital Limited (‘HVCL’) is the Fund Manager to HDFC Property Fund managing two schemes of the Fund ie, HDFC India Real Estate Fund (Corpus-Rs 1,000 crore) and IT Corridor Fund (Corpus-Rs 446 crore).
Griha Investments (‘GRIHA’) is the Fund Manager to HIREF International (Corpus-USD 750 million), domiciled in Mauritius.
The Advisor - HDFC Property Ventures Limited (‘HPVL’)
HPVL is the Investment Advisor to 2 domestic funds managed by HVCL and an Offshore fund managed by GRIHA. It is a 100% subsidiary of HDFC Ltd. HPVL provides investment advisory services to HVCL and GRIHA. HPVL has 17 professional staff with varied experience across real estate, advisory, construction projects, research and legal the team is a mix of engineers, chartered accountants, lawyers, architects and MBA’s