Mortgage lender HDFC Ltd has entered into a binding agreement to sell a 10 percent stake in HDFC Capital Advisors Ltd to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for Rs 184 crore.
HDFC Capital is a wholly-owned subsidiary of HDFC and is in the business of managing private equity funds focused on the real estate sector in India. It manages an approximately $3 billion funding platform. It is the investment manager of HDFC Capital Affordable Real Estate Funds 1, 2 & 3; and is aligned with the government’s goal of increasing housing supply and supporting the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative.
“The funds managed by HDFC Capital provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects including early-stage funding. In addition, the funds will also invest in technology companies (construction technology, fin-tech, clean-tech, etc.) engaged in the affordable housing ecosystem,” said the company in a statement.
This investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors across multiple strategies and asset classes in real estate and technology ecosystem, said Deepak Parekh, chairman, HDFC.
Mohamed AlQubaisi, executive director of the Real Estate Department, ADIA, said, “HDFC Capital is one of India’s leading providers of affordable housing project finance, with an established track record of supporting the development of new residential stock across the country. This agreement builds on our successful investments in the H-CARE funds and underlines our belief in the positive long-term outlook for affordable and mid-market housing in India.”