MUMBAI, Dec 7: SBICAP Ventures Limited (SVL), an alternative asset manager and a wholly owned subsidiary of SBI Capital Markets Limited, on Saturday announced the first closing of its Special Window for Affordable and Mid-Income Housing Fund (SWAMIH) Investment Fund I at Rs 10,530 crore.
The Government of India is the Sponsor while SBICAP Ventures is the Investment Manager to this Fund. Nishith Desai Associates acted as legal advisors to the Sponsor.
This Category II Alternate Investment Fund (AIF) has been formed under the Special Window for Affordable and Mid-Income Housing as announced by the Honourable Finance Minister on September 14th 2019, to provide last-mile funding to enable completion of construction of stalled housing projects.
This scheme was approved by the Cabinet on November 2, 2019. It is estimated that there are about 4.58 lakh stalled housing units in India. The Fund aims to provide senior capital for last mile funding to complete construction of housing projects. The Investment Manager estimates that this capital should be broadly sufficient to complete almost one lakh stalled units and release locked up capital of Rs 65,000 cr invested in these projects., a release said
Expressing satisfaction with the progress to date, Mr Sanjiv Chadha, MD & CEO, SBI Capital Markets and Chairman, SBICAP Ventures said ”The Fund has made remarkable progress since its announcement on Nov 06, 2019. We have substantially completed the fund raising, have scaled up the team, formed the investment committee and have begun examining potential investment opportunities”.
For SBICAP Ventures, this Fund is a giant step in its track record of ethical investments that seek to invest for improving the quality of life, effectively addressing stress in the housing sector, while still generating commercial return for its investors.
The Fund has attracted interest from investors such as Government of India, SBI, LIC, HDFC Ltd and all major public sector banks. The Government of India has committed a fund infusion of up to INR 10,000 crores in the Special Window and further investments will be brought in through institutional and private investors to generate a total corpus of Rs 25,000 crore.
It is expected that capital provided by the Fund will help struggling home buyers get a home, free locked up capital in these projects, provide employment and increase the demand for construction sector commodities, thus providing a boost to economic growth.