HDFC to sell 10% stake in HDFC Capital to Abu Dhabi Investment Authority

“…This investment will help leverage ADIA’s global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform,” said HDFC chairman Deepak Parekh.

“…This investment will help 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 HDFC chairman Deepak Parekh.

Housing Development Finance Corp said on April 20 that it has entered into binding agreements to sell 10% of HDFC Capital Advisors to a subsidiary of Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the United Arab Emirates, for Rs 184 crore.

HDFC Capital plans to finance the construction of one million affordable houses in India and is in active talks with foreign investors to obtain additional cash, according to Housing Development Finance Corp.

HDFC Capital operates an estimated $3 billion fundraising platform and is the investment manager for HDFC Capital Affordable Real Estate Funds one, two, and three.

The equity sale came after HDFC and HDFC Bank announced their merger on April 4th.

While the merger is considered as favourable in the long run, analysts warn that it will be difficult to obtain regulatory permits because the two corporations have diverse group entities in different industries that are overseen by many watchdogs.

On April 8, central bank governor Shaktikanta Das stated that the Reserve Bank of India has received a merger request from HDFC and HDFC Bank, which is now being reviewed.

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