HDFC to sell 10% stake in HDFC Capital to ADIA

New Delhi: Mortgage lender HDFC Ltd on Wednesday said it has entered into a binding agreement to sell 10% stake in wholly-owned subsidiary HDFC Capital to a branch of the Abu Dhabi Investment Authority (ADIA). 184 crores.

ADIA is also the primary investor in the Alternative Investment Fund managed by HDFC Capital.

Established in 2016, HDFC Capital is the investment manager of HDFC Capital Affordable Real Estate Fund 1, 2 and 3, and aligned with the goal of increasing the housing supply of the central government and supporting the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative has been done. , HDFC Capital manages a nearly $3 billion funding platform that has recently been rated as one of the world’s largest private finance platforms focused on the development of affordable housing.

Funds managed by HDFC Capital provide long-term, flexible funding across the life cycle of affordable and medium-income housing projects, including early-stage funding. In addition, the fund will also invest in technology companies (construction technology, fin-tech, clean-tech etc.) engaged in the affordable housing ecosystem.

Deepak Parekh, President, HDFC Ltd. said, “This investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience, making HDFC Capital a leading investment destination for global and local investors across multiple strategies and asset classes. It will help in moving forward towards becoming a platform. real estate and technology ecosystem.”

HDFC Capital aims to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, with a focus on sustainability. To achieve this, the company is in discussions with leading global investors to raise additional funds to invest in the development of affordable, middle-income housing projects in India.

“This agreement builds on our successful investment in H-Care Fund and underscores our belief in a positive long-term outlook for affordable and mid-market housing in India,” said Mohamed Alqubaisi, Executive Director, Real Estate, ADIA.

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