HDFC Ltd to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority

HDFC Ltd on Wednesday said that 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 around Rs 184 crore. 

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

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“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. 
 
Set up in 2016, HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3. It is aligned with the Government of India’s goal to increase housing supply and support the Pradhan MantriAwasYojana - ‘Housing for All’ initiative, said a statement from the company . HDFC Capital manages anapproximately US$3 billion fundingplatformwhich 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 providelong-term, flexible funding across the lifecycle ofaffordable and mid-income housing projects including early-stage funding. In addition,the fundswillalso invest in technologycompanies (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 indevelopment of affordable & mid-income housing projectsin India.
 “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,” said Mohamed AlQubaisi, Executive Director of the Real Estate Department, ADIA, said.
After the company made public that it will sell 10% in HDFC Capital to Abu Dhabi Investment Authority, shares of HDFC Ltd were trading higher by a 1.5% to Rs 2174 per share on the BSE