New Delhi, Jun 13 (IANS): Real estate firm HomeKraft on Wednesday said that it has diluted minority equity stake to HDFC Capital Affordable Real Estate Fund.

According to the real estate firm, the investment made by the fund, managed by HDFC Capital Advisors, which is in turn a 100 per cent subsidiary of HDFC, is "one of the rare entity level, equity investments in the real estate sector".

As per a company statement, HomeKraft will invest over $300 million for the development of affordable and mid-income housing across India with a mix of internal accruals, debt and private equity funds.

Besides, the real estate firm which is an ATS Group company, is looking to clock sales of 6,000-6,500 units in the next 3-5 years with expected revenue in the range of $600-$750 million.

"The affordable housing segment is expected to see healthy growth going forward given the impetus provided by the government through various incentives and subvention scheme," HDFC's Managing Director, Renu Sud Karnad said in a statement.

"HDFC is delighted to partner with a reputed developer like ATS for their foray in this segment and our funds will provide flexible financing to HomeKraft to meet its capital requirements and address the demand-supply gap in affordable housing in India."