Mumbai, India: HDFC Ltd on Wednesday said it has entered into binding agreements to sell 10% of the fully diluted paid-up share capital of HDFC Capital Advisors Ltd (HDFC Capital) to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for approx. INR 184 crores. 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 with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative. HDFC Capital manages an approximately US$3 billion funding platform which has recently been rated as one of the world’s largest private finance platforms focused on development of affordable housing.
The funds managed by HDFC Capital provide long-term, flexible funding acrossthe 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. 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, whilst focusing on sustainability. In order to achieve this objective, the company is in active discussions with leading global investors to raise additional funds to be invested in development of affordable & mid-income housing projects in India.
“Six years ago we set up HDFC Capital with a vision of progressing in sync with the government’s ‘Housing For All’ goal by increasing the supply of affordable homes in India. Supported by marquee global investors like ADIA, the 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” Deepak Parekh, Chairman – HDFC Ltd, said.