A Housing Development Finance Corp. Ltd.-sponsored alternative investment fund is planning to acquire a minority stake in a Keystone Realtors development project near Mumbai, The Economic Times of India reported, citing two people with knowledge of the deal.

One of the sources said HDFC Capital Affordable Real Estate Fund's planned investment in the Virar housing project will total 1.10 billion rupees, comprising equity and debt. The sources anticipate the project could deliver a return of over 20% for the fund as only a few affordable housing developments have surfaced of late.

The parties did not return emails for comment from the publication on the transaction.

The 1.10 billion-rupee investment is the first major investment in 2017 by HDFC Capital, which closed in January 2016, the Oct. 12 report noted. It also made a 3.50 billion-rupee investment in three Ahuja Constructions projects in 2016. The paper added the fund also invested 5.00 billion rupees in an ACME Group development.

As of Oct. 12, US$1 was equivalent to 65.05 Indian rupees.