Real Estate Fund SWAMIH To Deliver 6000 Units By FY22

Real Estate Fund SWAMIH To Deliver 6000 Units By FY22
05/03/2021 , by , in News/Views

A distressed real estate fund, set up by the Centre under the Special Window for Affordable and Mid Income Housing (SWAMIH) scheme to complete stalled projects, is gearing up to deliver its first batch of 17 housing projects, comprising more than 6,000 units by the end of fiscal 2022. 

It has also sanctioned around 165 projects for completing 1 lakh housing units over the next few years. Of these, 55 have received final approvals for completing 35,000 units, the fund’s investment officer Irfan Kazi said.

SWAMIH is a category 2 Alternate Investment Fund (AIF) with limited ability to take leverage. Unlike other private equity funds, Kazi said, the fund only looks at RERA-registered stressed and stalled projects with a positive net worth. After consultation with the government, the fund had brought down the IRR from 15% to 12% after several projects could not meet the net worth criteria.

Among lenders, private sector banks have been more proactive about completing stuck projects as compared to public sector banks. That said, the fund looks at projects with no lenders, where the developer was able to generate significant amount of sales initially but later slowed down, he added.

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