Thane housing project receives Rs 158 crore from SWAMIH Fund

The SWAMIH I, managed by SBICAP Ventures and supported by the government, has contributed a sum of Rs 158.50 crore into a mixed-use real estate project located on Ghodbunder Road in the Thane region, with a focus on residential units for affordable and mid-income groups.

The funding will bring the halted project of seven towers and one commercial building back to life. With a whopping 1,076 units, the project is set to bring relief to 500 long-awaiting home buyers thanks to the financial backing from SWAMIH I. Commenced in 2010, the Pushpanjali Residency Phase 3 scheme encountered several setbacks, such as approval delays, insufficient finances, and increased expenses caused by the challenges arising from the Covid-19 crisis.

According to Mohan Shinde, director of Shriraam Pioneer Developers, SWAMIH has introduced a funding structure that is unparalleled and essential for the completion of the project. The goal is to finish constructing the four wings, which are almost done, by Diwali 2023. Thanks to the funding received, the developer has set their sights on finishing the construction of the initial four towers in the project by year's end, as the bulk of the structures for these towers have already been erected.

More than 500 buyers have purchased units in the initial four towers, with an estimated handover date of December now anticipated. Construction of the last three towers will begin soon after the first four towers are handed over. According to Laxminarayan Ranga, who facilitated the transaction, SWAMIH has emerged as an ideal financial partner by providing seamless funding and compliance measures, leaving no loose ends in the project.

In September 2019, the finance minister, Nirmala Sitharaman, unveiled SWAMIH, which belongs to category II of alternative investment funds. The Cabinet subsequently approved its establishment in November of the same year. In December 2019, during its initial stage, the fund obtained a commitment of Rs 10,037.5 crore. The government has disclosed a further investment of Rs 5,000 crore, bringing the total investment amount to approximately Rs 15,530 crore. The new investment will allow the fund to assess transactions until December 2024. The State Bank of India, along with the Life Insurance Corporation of India (LIC), is one of the fund's anchor investors. Among its primary investors are the mortgage lender HDFC and other nationalised banks.

The government has implemented a key measure to provide liquidity to troubled projects, which will aid in the delivery of stalled apartments to homebuyers nationwide. By facilitating the completion of stalled housing projects throughout India, SWAMIH has effectively released an excess of Rs 35,000 crore in liquidity into the economy.

As of March, the ministry of finance-endorsed fund of Rs 15,530 crore had granted final approval to 130 projects, amounting to sanctioned funds of Rs 12,500 crore. Within the next three years, across 30 Tier 1 and Tier 2 cities, the company has a target to finish 81,000 homes in 130 ongoing projects, having already achieved the construction of 20,557 homes.

This story was first published in ET Realty

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Thane housing project receives Rs 158 crore from SWAMIH Fund

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