SBICAP’s catalytic fund for stressed realty projects hits final close at $1.9 bn

 SBICAP’s catalytic fund for stressed realty projects hits final close at $1.9 bn

SBICAP Ventures-managed SWAMIH Investment Fund I, which was created to catalyse housing projects stuck at various stages of development, has achieved a final closure with an additional dose of around Rs 5,000 crore from the Indian government.

The fund, which was sponsored by the Ministry of Finance, has completed its final close at Rs 15,530 crore ($1.9 billion). This comes three years after it made the first close at Rs 10,037.5 crore.

State Bank of India, the country’s largest lender, is one of the anchor investors of the fund along with Life Insurance Corporation of India (LIC), the nation’s biggest insurer. Other limited partners include HDFC and major public-sector banks.

The fund has evaluated over 1,000 projects to date and has given final approvals to 127 projects, covering 79,000 homes. In addition, it is currently assessing 286 projects across more than 30 cities in the country, with a goal to provide over one lakh homes to distressed home buyers.

“We at SWAMIH Investment Fund I continue to closely monitor all construction spend to ensure that the capital is utilised only for the completion of the project. The Fund has already achieved construction completion of 19,500 homes and is on track to deliver about 20,000 homes every year for the next three years,” said Irfan A Kazi, CIO of SWAMIH Investment Fund I.

Suresh Kozhikote, MD and CEO, SBICAP Ventures Ltd, said: “The State Bank Group will continue to provide all execution capabilities required to fully implement this strategic Government of India initiative.”

Vivek Sinha

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