The objective of the fund is to provide priority debt financing for completion of stressed, brownfield and RERA-registered residential projects.
BENGALURU: The central government has infused around ₹5,000 crore into SWAMIH Investment Fund I, helping the fund take its final tally to ₹15,530 crore. The SBICAP Ventures-managed fund invests in stressed residential projects.
Last-mile financing platform Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I), which was set up under the Special Window for Affordable and Mid-Income Housing Projects, aims to meet the stressed To provide priority debt financing. , Brownfield and RERA-registered residential projects.
The fund is sponsored by the Ministry of Finance and managed by SBICAP Ventures, a unit of State Bank of India. SBI is one of the anchor investors of the fund along with Life Insurance Corporation of India. Other investors include HDFC Ltd and major public sector banks.
“This round of capital infusion is a major step in our journey to provide the much-needed boost to the real estate industry. At SWAMIH Investment Fund we continue to closely monitor all construction expenses to ensure that the capital is used only to complete the project," said Irfan A. Kazi, Chief Investment Officer, SWAMIH Investment Fund "The fund has already completed construction. of 19,500 houses and is on track to deliver around 20,000 houses every year for the next 3 years."
Kazi, in an interview, said that the fund has so far flagged 127 projects in 30 cities, which will require the completion of 79,000 houses over time.
SWAMIH is a Category II Alternative Investment Fund (AIF), announced by Finance Minister Nirmala Sitharaman in September 2019, and approved by the Cabinet in November 2019. The fund received commitments of ₹10,037.5 crore in its first close on 6 December. , 2019, where the government had promised to infuse funds of up to ₹5,000 crore.
As on date, it is appraising 286 projects in over 30 cities in India that will help complete over one lakh homes. The additional commitment will enable the fund to continue evaluating deals until December 2024.
“State Bank Group will continue to provide all the execution capabilities required to fully implement this strategic initiative of the Government of India. The enhanced commitment from the Government of India as the Investment Manager of SBICAP Ventures Ltd. and the entire team of SWAMIH Investment Fund I is a statement of confidence in the execution capabilities of SBICAP Ventures Ltd.," said Suresh Kozhikote, MD & CEO, SBICAP Ventures.
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