HDFC to sell 10% equity in HDFC Capital to ADIA for ₹184 crore

This will help leverage ADIA’s global expertise and experience, says Deepak Parekh

April 20, 2022 10:53 am | Updated 10:53 am IST - Mumbai

HDFC chairman Deepak Parekh

HDFC chairman Deepak Parekh | Photo Credit: AFP

HDFC Ltd has entered into binding agreements to sell 10% of the fully diluted paid-up share capital of HDFC Capital Advisors Ltd, its wholly-owned subsidiary, to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for approximately ₹184 crore. 

ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital.

HDFC Capital, set up in 2016, is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3.

It manages an approximately US$3 billion funding platform.

The funds managed by it provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects, including early-stage funding.

Its 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.

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, HDFC said.

Deepak Parekh, Chairman, HDFC Ltd, said, “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,” he said.

“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 added.

Mohamed AlQubaisi, Executive Director of the Real Estate Department, ADIA, said “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.”

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