SBICAP Ventures Limited, which manages the SWAMIH Investment Fund has approved Rs 4,200 crore funding for 33 residential real estate projects that have been stalled for lack of funds, a top official said.
"We have completed due diligence with the help of external agencies and finalised funding for 33 real estate projects across the country. We will be funding Rs 4,200 crore for completion of 25,000 homes," Irfan A. Kazi, Chief Investment Officer, Special Window for Affordable and Mid Income Housing (SWAMIH) Fund, SBICAP Ventures said.
Responding to a query through virtual media interaction after announcing the funding of Mantri Serenity project in Bengaluru on Friday, he said loans under the SWAMIH Fund are provided only for the construction of stalled projects.
Without giving funding details of the Mantri Serenity project, Kazi said the funding will see the completion of stalled housing units.
SBICAP Ventures is also looking into another 11 applications for funding in Bengaluru. It has already accorded preliminary approval to these projects, Kazi said.
In 2019, the government created the Rs 25,000-crore SWAMIH Investment Fund as a special window to ensure completion of stalled brownfield projects, which are networth positive in the affordable housing/middle-income category. With support from the ‘alternative investment fund’, RERA registered developers and builders have an opportunity to complete their projects and deliver homes to buyers.
"Our mandate is to provide the last mile of funding required to complete such projects to ensure delivery of homes to buyers. This is expected to be the first of several projects in Bengaluru that we expect to fund to complete construction," Kazi said.
Mantri Serenity is the first project being funded by SWAMIH Fund in Bengaluru. The project is being developed jointly by Mantri Developers and Gokulam Shelters, which has provided land and initial funding is provided by Piramal Capital Finance.
"The project involves the construction of 2,712 units, of which 352 have been completed and delivered. While 1,530 units are sold, another 1,182 units are unsold", Sushil Mantri, Chairman & Managing Director, Mantri Developers told DH.
The project, coming up on Kanakapura road, is spread across 44 acres and includes a 1 million sq. feet of the shopping mall. "With this funding, we will be able to speed up the construction and complete it within the next 24 months," Mantri said.
Under the terms of the funding, Mantri has secured the loans at an interest rate of 12% with a repayment period of five years. The company will be spending Rs 256 crore on the construction and its total receivables are pegged at Rs 1,455 crore. After repaying the loan to Piramal and landowners share, the balance will be retained by the company, Mantri added.