IFC and its fund to invest $76 mn in Puravankara affordable housing

Two of the four projects being funded are planned in Kochi and Bengaluru, with saleable area of 4.5 mn sq ft. About 4,000 housing units will be built in next 5-7 seven years

World Bank group member IFC and IFC Emerging Asia Fund (EAF) have partnered with Bengaluru-based real estate player Puravankara to invest $76 million in the development of up to four residential projects under their affordable housing-focused ‘Provident’ brand. 

Two of the four projects are planned in Kochi and Bengaluru, with a saleable area of 4.5 million square feet. About 4,000 housing units will be built in the next 5-7 seven years, with other projects to be identified by 2021. 

“This strategic partnership aims to address the growing demand for housing in India by providing customers with affordable quality homes. IFC’s investment supplements Provident’s own investments in both existing and new developments,” said Ashish Puravankara, Managing Director of Puravankara Group.

 

While this partnership will fast-track the company’s vision to provide access to high-quality affordable housing, especially among first-time homebuyers,  it will help address the acute urban housing shortage in the country, with Indian cities needing to accommodate up to an estimated 18 million new urban dwellers per year, said the BSE-listed company.

The $76 million will comprise an investment of $33 million by IFC and an equal amount by EAF, along with a loan of $10 million from IFC.

“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.