World Bank arm to pump $23 mn into Ashiana affordable housing projects

The World Bank's investment arm IFC will pump in $23 million in projects by Ashiana Housing Limited (Ashiana) meant for affordable / mid-income housing as well as retirement homes for the elderly. 

The total project cost of the project is estimated at about $267 million.

IFC is one of the few financiers of affordable/mid-income projects in India.

IFC said that its long-term capital is not readily available to the real estate sector. IFC's equity investment is a structured 8-year equity investment, which would provide capital with a tenor that matches the project's life.

Ashiana's projects will be located across various cities in India, but primarily in Jaipur, Pune and Chennai.

 The project would involve the construction of about 5,000 to 6,000 mid-income/affordable housing units, including senior living units (with care homes) mostly targeted at active adults, across 5 to 7 projects over 6 to 8 years (the Project). The projects may be developed in a single or via multiple Special Purpose vehicles (SPVs) promoted by AHL. 

IFC is considering an 8-year structured equity investment of $23 million in one or more newly-created SPV promoted by AHL.

AHL, incorporated in Kolkata, is focussed on affordable residential housing targeting the middle-income segment. AHL also has a smaller senior living business and a 101-room hotel in Bhiwadi (Rajasthan).

Founded in 1979, Ashiana is listed on the Bombay and National Stock Exchanges in India. Focused on the middle-income segment, Ashiana has constructed 42 projects since inception.

As on March 31, 2017, Ashiana is present in multiple city-clusters across India with over 2.4 million sqft of existing projects and a pipeline of over 8 million sqft of future projects.