International Finance Corporation (IFC), an affiliate of the World Bank, has partially exited its investment from one of the affordable housing projects of Provident Housing, a wing of Puravankara, in Bengaluru. The project IFC partially exited from is Tivoli Hills, spread across 60 acres, 80 percent sold, and in the final stage of development.
The company said Rs 157 crore has been given an exit with a return rate of 20 percent compared with IFC's investment of Rs 322 crore; investment by all investors stands at Rs 550 crore.
They invested in two projects, one in Bengaluru and one in Kochi. In the Bengaluru project, IFC had an early exit. Now, they have committed new funding of about Rs 238 crore that will be again invested across two properties in Bengaluru. The project in Kochi is Provident Winworth spread across 17 acres of land. An investment of Rs 165 crore by IFC and Provident Housing has already been made in December 2020 and Rs 230 crore is yet to be deployed by the latter. Out of 3.48 mn sq ft, about 0.54 mn sq ft has already been launched, the company added. Additionally, among the launched development, almost 80 percent has been sold.
In October 2022, Provident Housing invested Rs 93 crore from an alternative investment fund (AIF) in a plotted development in Chennai with a development potential of 1.3 mn sq ft. The project in Guduvanchery will be Puravankara’s second plotted development project in Chennai with a potential topline of Rs 350 crore.
More AIF investments will be made across two projects in the next 4-5 weeks. Another three projects have been identified and the deployment will be done over the next 4-6 months, in locations that the company did not disclose.
In March 2022. Purva Asset Management Pvt Ltd, a subsidiary of Puravankara Ltd, launched a Rs 750 crore AIF to invest in affordable housing projects and plotted developments. The fund will be invested across projects in Bengaluru, Pune, Chennai, Hyderabad, and Mumbai Metropolitan Region (MMR) with a target return rate of 25 percent. The fund plans to raise Rs 500 crore and a Rs 250 crore greenshoe option. In July 2022, Purva Asset Management Pvt Ltd saw its first closure of about Rs 200 crore for its maiden AIF.
The AIF, known as Purva Real Estate Fund, is classified as Category II. The fund envisages investment in 6-8 mid-sized projects under affordable housing with a 4-year development timeline and plotted projects of up to 1.1-1.5 mn sq ft.
