Housing Development Finance Corporation Ltd. has agreed to sell 10% stake in private equity arm HDFC Capital Advisors Ltd. to a wholly-owned subsidiary of Abu Dhabi Investment Authority for about Rs 184 crore.
The sovereign wealth fun is also the primary investor in the alternative investment funds managed by $3-billion HDFC Capital.
Set up in 2016, HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Funds I, II and III. These provide long-term, flexible funding across the life cycle of affordable and mid-income housing projects, including early-stage funding, according to a statement.
HDFC Capital's target is to finance the development of one million affordable homes in India. To achieve this, the company is in discussions with leading global investors to raise additional funds to be invested in development of affordable and mid-income housing projects in India.
Earlier this month, HDFC announced its merger with HDFC Bank Ltd. to create a banking behemoth. Once the deal is effective, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC will own 41% of the bank, according to stock exchange filings by the firms.
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