Indian mortgage lender HDFC will sell a 10 per cent stake in its subsidiary HDFC Capital Advisors to a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority (Adia).

The stake to be sold is valued at INR1.84bn ($24m).

HDFC Capital is a wholly-owned subsidiary of HDFC and manages private equity funds targeting real estate developments in India. Its core focus is to provide "long-term, flexible debt for affordable and mid-income housing developments in India".

Adia has previously invested $3bn in three affordable real estate funds managed by HDFC Capital: H-Care 1, 2 and 3. 

Established in 1976 to manage funds on behalf of the Abu Dhabi government, Adia oversees assets worth nearly $698bn, according to estimates from the Sovereign Wealth Fund Institute.

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