Qatar Holding to Invest $250 m in Arthveda’s Housing Fund
Mumbai: Qatar Holding, the private equity arm of Qatar Investment Authority, has committed to invest $250 million in Mumbai-based Arthveda Fund Management’s affordable housing fund, indicating investor interest in a segment that has been granted infrastructure status in the Union Budget last week.
Arthveda intends to deploy the money raised in the low- and middle-income (LMI) housing fund in projects in top ten cities of the country. It is targeting an internal rate of return of 18%-21%. “The subscription of the entire corpus of the FDI-compliant affordable housing fund by Qatar Holding was the first substantial foreign investment in India’s affordable housing segment spanning low and mid-income residences, after the Budget on Feb1,” said Bikram Sen, CEO of Arthveda.
Infrastructure status will help the affordable housing sector get preferential and low-interest rate loans from banks. The govt has also announced several other enabling measures such as tax sops for the real estate sector, with an aim to provide housing for all by 2022. The measures are aimed at encouraging the private sector to build more affordable houses, thus boosting supply and keeping prices in check.
According to estimates, India needs to build around 19 million urban housing units in the low- and middle-income category by 2022 across tier I, II and III cities.
Arthveda intends to deploy the money raised in LMI housing fund in projects in top ten cities