International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, is looking to invest up to $50 million in Tata Housing Development Company’s affordable housing arm Smart Value Homes Ltd (SVH), according to a disclosure.
IFC, which invests through various forms such as equity, quasi-equity and debt, did not specify how it would invest in SVH.
SVH will use the funds to build affordable housing near industrial clusters in the 10 largest metros in India. However, the sites for IFC-financed projects are yet to be determined. The investment from IFC will partially fund the development of affordable housing units.
Mumbai-headquartered SVH has seven ongoing projects in the states of Gujarat, Tamil Nadu, Maharashtra and Karnataka. It also plans to sell around 50,000 affordable housing units in India over the next five years.
Recently, the firm announced the sale of its fourth project called New Haven (its first venture in Bangalore) under the banner of Smart Value Homes.
Tata Housing provides real estate development services and undertakes residential, commercial and retail projects. In November 2012, Portman Holdings LLC invested $11.80 million in Tata Housing Development’s Bangalore-based luxury housing project The Promont for 26 per cent stake.
Tata Housing, a wholly owned subsidiary of Tata Sons, has completed 17 residential and 7 commercial projects, spread across 3.8 million sq. ft.
(Edited by Sanghamitra Mandal)
