Mortgage lender, HDFC Ltd has entered into a binding agreement to sell a 10 per cent stake in HDFC Capital Advisors Ltd to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) for Rs 1.84 crore. HDFC Capital, a wholly-owned subsidiary of HDFC, is engaged in managing private equity funds focused on the Indian real estate sector.

It contains a financing platform of about $3 billion. Is the investment manager of HDFC Capital Affordable Real Estate Funds 1, 2, and 3 aligned with the government’s objective of increasing housing supply and supporting the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative.

“Funds managed by HDFC Capital provide long-term, flexible funding, including early-stage funding, throughout the life cycle of affordable and middle-income housing projects. In addition, the funds will invest in technology companies engaged in the affordable housing ecosystem (construction technology, fintech, cleantech, etc.),” the company said in a statement.

This investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience to further advance HDFC Capital as a leading investment platform for international and local investors across multiple strategies, and asset classes in the real estate and technology ecosystem Chairman Deepak Parekh said, HDTV.

Mohamed AlQubaisi, Executive Director, Real Estate, ADIA, said: “HDFC Capital is one of India’s leading providers of affordable housing project finance with a proven track record in supporting the development of new residential stock across the country. This agreement builds on our commitment to the H-CARE Fund. Building on a successful investment and underscoring our belief in the positive long-term outlook for affordable and mid-market housing in India.”