HDFC to sell 10% equity in HDFC Capital to ADIA for Rs 184 cr

Retail housing finance company Housing Development Finance Corporation (HDFC), on Wednesday, announced the sale of 10 per cent of the fully diluted paid-up share capital of wholly-owned subsidiary HDFC Capital to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) for Rs 184 crore. 

HDFC Capital manages an approximately $3 billion funding platform, recently rated as one of the world’s largest private finance platforms focused on development of affordable housing. It is aligned with the government’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana - ‘Housing for All’ initiative. 

It is also the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3. 

The company stated that ADIA is the primary investor in the alternative investment funds managed by HDFC Capital. The funds managed by HDFC Capital provide long-term and flexible funding to affordable and mid-income housing projects. The funds are also invested in technology companies engaged in the affordable housing ecosystem

The HDFC arm aims to finance the development of 1 million affordable homes in India. The company is in talks with leading global investors to raise additional funds to be invested in affordable and mid-income housing projects.

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

Executive Director of the Real Estate Department, ADIA, Mohamed AlQubaisi 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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