AgenciesOver two dozen stuck housing projects in the country are likely to be revived as several companies have created alternative investment funds (AIFs) to invest in them. The AIFs collectively have about Rs 2,000 crore for last-mile funding.
Most of the stuck projects are net worth positive and require funding to restart operations. The funds have finalised projects in NCR, Mumbai, Pune and Bengaluru.
Real Estate advisory firm 360 Realtors said it is in the final stage of deploying Rs 100 crore of the Rs 500-crore AIF and it will invest in stuck residential projects by 2022.
“We have identified one project in Noida and another in Gurgaon and we expect to sign the deals this month,” said Ankit Kansal, founder of 360 Realtors. “To begin with, we will focus on NCR, as it has a larger number of stuck projects.”
The company has entered into a partnership with Rising Straits Capital, a real estate private equity (PE) firm, and will provide last-mile funding to projects in NCR, Bengaluru, Pune and Mumbai.
The AIF will purchase real estate inventory in bulk in stressed real estate projects.
Experts said the government-backed, last-mile fund under the special window for completion of construction of affordable and mid-income housing projects (SWAMIH I) has not been very effective in helping developers due to its strict conditions.
SWAMIH fund has provided preliminary and final approval to 213 projects across the country, committing Rs 17,000 crore. SWAMIH is a category II AIF announced by finance minister Nirmala Sitharaman in September 2019. It was approved by the Cabinet in November 2019.
Most of the stuck projects are net worth positive and require funding to restart operations. The funds have finalised projects in NCR, Mumbai, Pune and Bengaluru.
Real Estate advisory firm 360 Realtors said it is in the final stage of deploying Rs 100 crore of the Rs 500-crore AIF and it will invest in stuck residential projects by 2022.
“We have identified one project in Noida and another in Gurgaon and we expect to sign the deals this month,” said Ankit Kansal, founder of 360 Realtors. “To begin with, we will focus on NCR, as it has a larger number of stuck projects.”
The company has entered into a partnership with Rising Straits Capital, a real estate private equity (PE) firm, and will provide last-mile funding to projects in NCR, Bengaluru, Pune and Mumbai.
The AIF will purchase real estate inventory in bulk in stressed real estate projects.
Experts said the government-backed, last-mile fund under the special window for completion of construction of affordable and mid-income housing projects (SWAMIH I) has not been very effective in helping developers due to its strict conditions.
SWAMIH fund has provided preliminary and final approval to 213 projects across the country, committing Rs 17,000 crore. SWAMIH is a category II AIF announced by finance minister Nirmala Sitharaman in September 2019. It was approved by the Cabinet in November 2019.
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