HDFC sells 10% stake in HDFC Capital to ADIA for ₹184 crore


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

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

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 million.

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

Established in 2016, HDFC Capital is the investment manager of HDFC Capital Affordable Real Estate Funds 1, 2 & 3.

It manages around $3 billion in funding platform.

The funds she manages provide long-term, flexible, lifecycle financing for affordable, high-income housing projects, including early-stage financing.

It aims to fund the development of one million affordable homes in India through a combination of innovative finance, partnerships and technology, with a focus on sustainability.

To achieve this goal, the company is in active discussions with leading global investors to raise additional funds to invest in the development of affordable and high-income residential projects in India, HDFC said.

Deepak Parekh, Chairman of HDFC Ltd, said: “Six years ago we founded HDFC Capital with a vision to make progress in line with the Government’s ‘Housing for All’ objective by increasing the supply of affordable housing in India.

“Backed by renowned global investors such as ADIA, the funds managed by HDFC Capital have grown into one of the world’s largest private financing platforms for affordable housing development,” he said.

“This investment by ADIA will allow HDFC Capital to leverage ADIA’s global expertise and experience to further transform HDFC Capital into 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 ADIA’s Real Estate Division, said: “This agreement builds on our successful investments in the H-CARE Funds and underscores our belief in the positive long-term prospects for affordable and mid-sized housing in India.”

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