Sumitomo Mitsui Trust Bank Makes First Investment in Indian Real Estate Fund
Mumbai, November 6, 2026: Sumitomo Mitsui Trust Bank, Limited (SuMiTB) has made its first investment in an Indian real estate fund by committing capital to the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), managed by HDFC Capital Advisors Limited, according to a press release.
HDFC Capital Advisors Limited, the real estate private equity arm of the HDFC Group, focuses on affordable and mid-income residential real estate with funds combining to create a platform of approximately Rs 41,500 crore. The H-DREAM Fund has a target corpus of Rs 4,150 crore with a greenshoe option of Rs 4,150 crore, and current investor commitments exceeding Rs 3,320 crore.
SuMiTB’s investment in the H-DREAM Fund marks a significant milestone in its real estate investment strategy in India. The H-DREAM Fund is among the first real estate private credit funds globally focused on supporting the development of green, affordable, and mid-income housing. The fund provides financing to projects that prioritize affordable housing while implementing the Excellence in Design for Greater Efficiencies green building framework in line with global sustainability standards.
“This investment represents our first commitment to an Indian real estate fund and marks an important milestone for us. We see it as the foundation of a long-term relationship with HDFC Capital and the broader HDFC Group, creating new opportunities to further expand our business in India,” said Riro Sato, Director, Senior Managing Executive Officer, SuMiTB.
“We are delighted to welcome SuMiTB as an investor in H-DREAM Fund and to partner with it on its first investment in a real estate fund in India. Patient, long-term capital has an important role to play in supporting the development of sustainable housing and resilient urban communities. This partnership also reinforces the growing economic and investment relationship between India and Japan, built on shared values, institutional trust and a long-term outlook,” said Vipul Roongta, CEO, HDFC Capital.
SuMiTB’s investment in the H-DREAM Fund was executed through an offshore feeder fund structure established under the International Financial Services Centres Authority framework at Gujarat International Finance Tec-City. The fund has adopted the International Finance Corporation’s Environmental and Social Performance Standards alongside the green building framework to embed sustainability considerations across financed projects.
