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IFC partially exits Puravankara's affordable housing project
Real Estate

IFC partially exits Puravankara's affordable housing project

The International Finance Corporation (IFC), a World Bank affiliate, has partially sold its investment in one of Bengaluru's affordable housing projects run by Provident Housing, a division of Puravankara.

In comparison to IFC's investment of Rs 3.22 billion, the company reported a Rs 1.57 billion exit with a 20% return rate; the total investment is now at Rs 5.5 billion.

"They invested with us in two projects, one in Bengaluru and one in Kochi. In the Bengaluru project, we gave them an early exit. Now, they have committed new funding for us of about Rs 2.38 billion that will be again invested across two properties that we are evaluating (in Bengaluru),"Mallanna Sasalu, chief operating officer, stated. Their investment in Kochi continues, and he hopes to launch within the next 3-4 months.

Tivoli Hills is a 60-acre development project that is 80 percent sold and in the final stages of development.

Provident Winworth is another project in Kochi that spans 17 acres of land. IFC and Provident Housing have already invested Rs 1.65 billion in December 2020, with the latter yet to deploy Rs 2.3 billion. The company added that 0.54 million square feet of the 3.48 million square feet has already been launched. Furthermore, nearly 80% of the launched developments have been sold.

Provident Housing invested Rs 930 million from an alternative investment fund (AIF) in a plotted development in Chennai with a development potential of 1.3 million square feet in October 2022. Puravankara's second plotted development project in Chennai, with a potential topline of Rs 3.5 billion, will be in Guduvanchery.

In the next 4-5 weeks, more AIF investments will be made across two projects. Another three projects have been identified, and deployment will take place over the next 4-6 months in locations not disclosed by the company.

In March 20, 2022 Purva Asset Management Pvt Ltd, a Puravankara Ltd subsidiary, has launched a Rs 7.5 billion AIF to invest in affordable housing and plotted developments.

With a target return rate of 25%, the fund would be spread across projects in Bengaluru, Pune, Chennai, Hyderabad, and the Mumbai Metropolitan Region (MMR).

The fund intends to raise Rs. 5 billion together with a Greenshoe Option of Rs. 2.5 billion. In July 2022, Purva Asset Management Pvt Ltd saw its first closure of about Rs 2 billion for its maiden AIF.

The AIF, often referred to as the Purva Real Estate Fund, is categorised as Category II and plans to invest in 6–8 mid-sized affordable housing projects over a 4-year development period, with projected developments of up to 1.1–1.5 msf.

See also:
Puravankara plans to develop 15 mn sq ft this year
Smartworld Developers raises Rs 2.5 bn from Motilal Oswal for existing housing projects


The International Finance Corporation (IFC), a World Bank affiliate, has partially sold its investment in one of Bengaluru's affordable housing projects run by Provident Housing, a division of Puravankara. In comparison to IFC's investment of Rs 3.22 billion, the company reported a Rs 1.57 billion exit with a 20% return rate; the total investment is now at Rs 5.5 billion. They invested with us in two projects, one in Bengaluru and one in Kochi. In the Bengaluru project, we gave them an early exit. Now, they have committed new funding for us of about Rs 2.38 billion that will be again invested across two properties that we are evaluating (in Bengaluru),Mallanna Sasalu, chief operating officer, stated. Their investment in Kochi continues, and he hopes to launch within the next 3-4 months. Tivoli Hills is a 60-acre development project that is 80 percent sold and in the final stages of development. Provident Winworth is another project in Kochi that spans 17 acres of land. IFC and Provident Housing have already invested Rs 1.65 billion in December 2020, with the latter yet to deploy Rs 2.3 billion. The company added that 0.54 million square feet of the 3.48 million square feet has already been launched. Furthermore, nearly 80% of the launched developments have been sold. Provident Housing invested Rs 930 million from an alternative investment fund (AIF) in a plotted development in Chennai with a development potential of 1.3 million square feet in October 2022. Puravankara's second plotted development project in Chennai, with a potential topline of Rs 3.5 billion, will be in Guduvanchery. In the next 4-5 weeks, more AIF investments will be made across two projects. Another three projects have been identified, and deployment will take place over the next 4-6 months in locations not disclosed by the company. In March 20, 2022 Purva Asset Management Pvt Ltd, a Puravankara Ltd subsidiary, has launched a Rs 7.5 billion AIF to invest in affordable housing and plotted developments. With a target return rate of 25%, the fund would be spread across projects in Bengaluru, Pune, Chennai, Hyderabad, and the Mumbai Metropolitan Region (MMR). The fund intends to raise Rs. 5 billion together with a Greenshoe Option of Rs. 2.5 billion. In July 2022, Purva Asset Management Pvt Ltd saw its first closure of about Rs 2 billion for its maiden AIF. The AIF, often referred to as the Purva Real Estate Fund, is categorised as Category II and plans to invest in 6–8 mid-sized affordable housing projects over a 4-year development period, with projected developments of up to 1.1–1.5 msf. See also: Puravankara plans to develop 15 mn sq ft this yearSmartworld Developers raises Rs 2.5 bn from Motilal Oswal for existing housing projects

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