HDFC to sell 10% stake in HDFC Capital to ADIA for Rs 184 crore
Mortgage lender Housing Development Finance Corporation (HDFC) on Wednesday announced the sale of a 10% stake in HDFC Capital Advisors to a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for around Rs 184 crore.
ADIA is also the leading investor in alternative investment funds managed by HDFC Capital, the company said in a statement.
Founded in 2016, HDFC is the investment manager of HDFC 1, 2 and 3 affordable real estate funds; and is in line with the government’s aim to increase housing supply and support the Pradhan Mantri Awas Yojana – “Housing for All” initiative, according to the statement.
“Funds managed by HDFC Capital provide flexible, long-term financing throughout the lifecycle of affordable and high-income housing projects, including seed funding,” HDFC said.
In addition, the funds will also invest in technology companies such as building technologies, financial technologies, clean technologies, etc. involved in the affordable housing ecosystem.
HDFC Capital aims to finance the development of one million affordable housing units in India through a combination of innovative financing, 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 housing in India,” the mortgage lender said.
Earlier this month, HDFC Capital announced a merger with India’s largest private lender, HDFC Bank, to create a banking giant. After the merger, HDFC’s stake in HDFC Bank will cease and HDFC Bank will be 100% owned by public shareholders. Current HDFC shareholders will own 41% of HDFC Bank.
“This investment from ADIA enables HDFC Capital to leverage ADIA’s global expertise and experience to further transform HDFC Capital into a premier investment platform for global and local investors across multiple strategies and asset classes in the real estate and technology ecosystem,” said HDFC Chairman Deepak Parekh
HDFC Capital is a leading provider of affordable housing finance with a proven track record of backing new housing developments across the country, said Mohamed AlQubaisi, executive director of ADIA’s real estate division.
Shares of HDFC climbed 2.01% to end at 2,181.70 rupees per share on BSE.