International Finance Corp. (IFC) and IFC Emerging Asia Fund (EAF) will invest $76 million in four residential projects of real estate firm Puravankara Group, to be developed under the latter’s ‘Provident’ affordable housing brand. IFC and EAF will invest up to $76 million (Rs 556 crore) in special purpose vehicles (SPVs) set up by Puravankara, which will comprise investment of $33 million by IFC and an equal amount by EAF, along with a loan of $10 million from IFC.
Two of these four projects are planned in Kochi and Bengaluru with a saleable area of 4.5 million sf/ft. About 4,000 housing units will be built in the next five to seven years, with other projects to be identified by 2021. The Kochi project will be designed as per IFC’s green building certification system, EDGE (Excellence in Design for Greater Efficiencies).
Ashish Puravankara, Managing Director of Puravankara Group, said, “We are excited to partner with IFC and see a synergy in our values. 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. 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.”
“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. “We are happy to support a quality-driven company, and remain committed to helping build a more inclusive, sustainable, and resilient future for the country.”