HDFC Capital Advisors, a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA), would sell 10% of its fully diluted paid-up share capital to a wholly-owned subsidiary of ADIA for about Rs 184 crores, the mortgage lender said. According to a statement published here, the lender has entered into a binding agreement to sell the interest to ADIA’s wholly-owned subsidiary, which is also the major investor in HDFC Capital’s alternative investment funds, for Rs 184 crore. HDFC Capital, which was founded in 2016, is the investment manager for the HDFC Capital Affordable Real Estate Funds 1, 2, and 3, as well as a USD 3 billion fundraising platform.
“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,” Deepak Parekh, Chairman, HDFC said.
He went on to say that HDFC Capital would be able to use ADIA’s worldwide knowledge and experience to help it become a premier investment platform for global and local investors across a variety of strategies and asset classes in the real estate and technology ecosystem. HDFC Capital manages funds that provide long-term, flexible capital for affordable and middle-income housing developments, including early stage financing. In addition, the funds will invest in technology businesses that are involved in the affordable housing ecosystem, such as construction technology, fin-tech, clean-tech, and so on.
Commenting on the development, Mohamed AlQubaisi, Executive Director of the Real Estate Department, ADIA, said, “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.”
HDFC Capital’s goal is to fund the construction of one million affordable houses in India through a combination of creative financing, partnerships, and technology while maintaining a focus 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 the development of affordable and mid-income housing projects in India,” the company added.
