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Govt invests ₹5k crore in SWAMIH fund

BENGALURU : The Union government has infused about 5,000 crore in SWAMIH Investment Fund I, helping the fund mark its final close of 15,530 crore. The SBICAP Ventures-managed fund invests in stressed residential projects.

The last-mile financing platform Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I), which was set up under the Special Window for Affordable and Mid-Income Housing, aims to provide priority debt financing to complete stressed, brownfield and RERA-registered residential projects.

The fund is sponsored by the finance ministry and managed by SBICAP Ventures, a unit of State Bank of India. SBI is also one of the fund’s anchor investors along with Life Insurance Corp. of India. Other investors include HDFC Ltd and major state-run banks.

“This round of capital infusion marks a big step in our journey to provide a much-needed boost to the real estate industry. We at SWAMIH Investment Fund I continue to closely monitor all construction spend to ensure that the capital is utilized only for completion of the project,” said Irfan A. Kazi, chief investment officer, SWAMIH Investment Fund. “The fund has already achieved construction completion of 19,500 homes and is on track to deliver about 20,000 homes every year for the next 3 years.”

Kazi said, in an interview, that the fund has so far green-signalled 127 projects across 30 cities, which would entail the completion of 79,000 homes over a period of time.

SWAMIH is a category II Alternative Investment Fund (AIF) which was announced by finance minister Nirmala Sitharaman in September 2019, and approved by the Cabinet in November 2019. The fund had received a commitment of 10,037.5 crore in its first close, on 6 December, 2019, where the government had committed a fund infusion of up to 5,000 crore.

As on date, it is appraising 286 projects across more than 30 cities in India which would help complete over one lakh homes. The additional commitment will enable the Fund to continue to evaluate deals till December 2024.

“The State Bank Group will continue to provide all execution capabilities required to fully implement this strategic Government of India initiative. The increased commitment from the Government of India is a statement of confidence in the execution abilities of SBICAP Ventures Ltd. as the investment manager and the entire team at SWAMIH Investment Fund I,” said Suresh Kozhikote, MD and CEO at SBICAP Ventures.

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