ArthVeda to Hit the Fund Trail to Raise $1 b
AMC set to tap institutional investors; invest major portion in MMR projects
Mumbai: ArthVeda Fund Management, part of financial services conglomerate Wadhawan Global Capital, is planning to raise a total $1 billion to invest in affordable housing projects across the country, said a top company official. The asset management company recently received $250 million commitment from Qatar Holding, part of Qatar sovereign fund, for its affordable, low and middle income housing fund. This is the first such commitment received by an Indian fund following the Budget 2017 proposal to grant affordable housing infrastructure status.
“For us, focus on low and middle income housing started decades ago that got accelerated in 2003-04 and has now broadened into investment space through funds managed by ArthVeda. Over the last 13 years, our group flagship company DHFL has grown to close to ₹ 90,000 crore from ₹ 1,100 crore loans to affordable segment. This growth gives us a unique insight into this segment,” Bikram Sen, CEO of Arthveda Fund Management, told ET.
Mortgage lender Dewan Housing Finance Corporation (DHFL) is also part of Wadhawan Global Capital. The fund will be raising a total of $1 billion over the next two years to invest in low and middle income housing projects. The fund will be raised from longterm institutional investors including sovereign funds, pension funds, fund of funds, foundations and private equity funds.
ArthVeda will be investing a significant part of the money through this exercise in projects being developed in Mumbai Metropolitan Region (MMR). Apart from MMR, it will also invest in projects on the outskirts of Pune, Bengaluru, Chennai, Hyderabad and select cities of Madhya Pradesh, Rajasthan and Gujarat.
“While the government has defined affordable housing on units’ size and loan size from which income levels can be derived, our approach is to look at LIG (low income group), MIG (middle income group) and EWS (economically weaker section), only on the basis of their income levels,” said Sen.
It has categorised monthly income level for EWS at ₹ 7,000 to ₹ 15,000, LIG at families with income of ₹ 15,000 to ₹ 30,000 per month and ₹ 30,000 to ₹ 1 lakh a month for middle income group. ArthVeda has identified 51 cities where it wants to invest from the $250 million it got from Qatar Holding.