ArthVeda to Hit the Fund Trail to Raise $1 b

AMC set to tap in­sti­tu­tional in­vestors; in­vest ma­jor por­tion in MMR projects

The Economic Times - - Companies: Pursuit Of Profit - Kailash.Babar@ times­group.com

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.

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