Qatar Hold­ing to In­vest $250 m in Arthveda’s Hous­ing Fund

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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

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