Housing Development Finance Corporation (HDFC) on Wednesday said it has entered into binding agreements to sell a 10% stake in HDFC Capital Advisors to a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) for Rs 184 crore. ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital.
Set up in 2016, HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3, and is aligned to increase housing supply under the Pradhan Mantri Awas Yojana. HDFC Capital manages an approximately $3-billion funding platform.
HDFC Capital’s target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, while focusing on sustainability. The company is in active discussions with leading global investors to raise additional funds to be invested in development of affordable and mid-income housing projects in India.
Deepak Parekh, chairman, HDFC, said supported by marquee global investors like ADIA, funds managed by HDFC Capital have grown to create one of the world’s largest private financing platforms for the development of affordable housing. “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 the real estate and technology ecosystem,” he said.
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 engaged in the affordable housing ecosystem, such as those working in the areas of construction technology, fintech and clean-tech.
Mohamed AlQubaisi, executive director of the real estate department, ADIA, said the agreement underlines ADIA’s belief in the positive long-term outlook for affordable and mid-market housing in India.