IFC and IFC EAF have partnered with the Puravankara Group to invest in the development of up to four residential projects under the Puravankara group's affordable housing brand 'Provident'.
IFC, a member of the World Bank group, and IFC Emerging Asia Fund (EAF) will invest Rs 556 crore in an affordable housing platform of realty firm Puravankara Ltd to develop up to four projects.
IFC and IFC EAF have partnered with the Puravankara Group to invest in the development of up to four residential projects under the Puravankara group’s affordable housing brand ‘Provident’.
Two of these four projects are planned in Kochi and Bengaluru with a saleable area of 4.5 million sq ft. About 4,000 housing units will be built in the next five to seven years, with other projects to be identified by 2021.
“IFC, together with IFC Emerging Asia Fund, will invest up to Rs 556 crore (about USD 76 million) in special purpose vehicles set up by Puravankara Group. This will comprise of an investment of Rs 240 crore (about USD 33 million) by IFC and an equal amount by EAF, along with a loan of Rs 76 crore (about USD 10 million) from IFC,” the company said.
“This strategic partnership aims to address the growing demand for housing in India by providing customers with affordable quality homes,” Puravankara group MD Ashish Puravankara said.
“IFC’s investment supplements Provident’s own investments in both existing and new developments. Provident’s use of pre-cast technology will see an acceleration in both time and superior quality homes. We hope this is the beginning of a long-term relationship with IFC,” he added.
The Kochi project will be designed as per IFC’s green building certification system, EDGE (Excellence in Design for Greater Efficiencies).
“In a post-COVID world, the housing sector can play a key role in India. Financing affordable and green housing can protect jobs, preserve livelihoods, and address climate change while restarting economies,” said Jun Zhang, Country Head-India at IFC.
Bengaluru-based Puravankara has 40 million square feet of projects, which are completed and delivered; around 20 million square feet of projects are under development. Currently, the total land assets of the company are around 65 million square feet.
Provident Housing Ltd, a wholly-owned subsidiary of Puravankara, has launched over 20 million square feet across the cities of Bengaluru, Mangalore, Chennai, Coimbatore, Hyderabad and Goa of which close to 10 million square feet has been completed and delivered. Additionally, close to 8 million square feet is planned for new launches in the coming quarters.