Mumbai-based ArthVeda Fund Management Pvt. Ltd. (AVFM) announced that Qatar Holding (QH) has committed to invest $250 million in its affordable low and middle income (LMI) fund, which projects an IRR in excess of 18–21 percent.
The Indian government had recently declared affordable housing as an infrastructure category.
In a statement, Bikram Sen, CEO of Arthveda said that the subscription of the entire corpus of its FDI-compliant affordable housing fund by Qatar Holding was the first substantial foreign inward investment into India’s affordable housing segment spanning LMI residences. Sen was previously the CEO of Dewan Housing Finance Corp. Ltd. (DHFL).
The LMI residential real estate segment in India offers a significant opportunity to grow investments and AVFM will continue to build on this success by conceiving more of such vehicles. AVFM has built a robust track record and is uniquely positioned to successfully manage such investments.
According to ArthVeda, it is estimated that India needs to build 19 million urban housing units in the low and mid-income category by 2022 across Tier 1, 2 and 3 cities which requires a capital of $1 trillion.
AVFM is part of Wadhawan Global Capital, a financial services conglomerate, with DHFL as the flagship entity. DHFL has over three decades of track record in lending to the LMI segment in India.
It has lent over $25 billion to this segment and overall, DHFL along with its associate housing finance company, Aadhar Housing Finance, lends on an average $350 million in a month to home buyers in more than 500 locations in India.
“AVFM’s Affordable Housing Fund leverages our entire group’s leadership in the LMI lending segment and applies that to investments in affordable housing. I am very proud that a prestigious institution from Qatar has invested in this fund through Arthveda,” said Kapil Wadhawan, chairman and managing director of DHFL and ArthVeda.
The Indian government had recently declared affordable housing as an infrastructure category.
In a statement, Bikram Sen, CEO of Arthveda said that the subscription of the entire corpus of its FDI-compliant affordable housing fund by Qatar Holding was the first substantial foreign inward investment into India’s affordable housing segment spanning LMI residences. Sen was previously the CEO of Dewan Housing Finance Corp. Ltd. (DHFL).
The LMI residential real estate segment in India offers a significant opportunity to grow investments and AVFM will continue to build on this success by conceiving more of such vehicles. AVFM has built a robust track record and is uniquely positioned to successfully manage such investments.
According to ArthVeda, it is estimated that India needs to build 19 million urban housing units in the low and mid-income category by 2022 across Tier 1, 2 and 3 cities which requires a capital of $1 trillion.
AVFM is part of Wadhawan Global Capital, a financial services conglomerate, with DHFL as the flagship entity. DHFL has over three decades of track record in lending to the LMI segment in India.
It has lent over $25 billion to this segment and overall, DHFL along with its associate housing finance company, Aadhar Housing Finance, lends on an average $350 million in a month to home buyers in more than 500 locations in India.
“AVFM’s Affordable Housing Fund leverages our entire group’s leadership in the LMI lending segment and applies that to investments in affordable housing. I am very proud that a prestigious institution from Qatar has invested in this fund through Arthveda,” said Kapil Wadhawan, chairman and managing director of DHFL and ArthVeda.
