Puravankara launches Rs 750 cr fund for affordable housing projects
Real Estate

Puravankara launches Rs 750 cr fund for affordable housing projects

Purva Asset Management Pvt Ltd, a subsidiary of real estate firm Puravankara Ltd, has launched a Rs 750 crore alternative investment fund (AIF) to infuse in affordable housing projects and plotted developments.

Puravankara creates budget homes under the Provident brand, plotted projects under Purva Land, and premium housing under the Puravankara brand.

The Category II AIF Purva Real Estate Fund, which recently got the mandatory Securities and Exchange Board of India (Sebi) approval, will be overseen by Purva Asset Management, and the first fund scheme is called Purva Residential Excellence Fund-1. It plans to raise Rs 500 crore for the fund, along with a Rs 250 crore greenshoe option from mainly domestic investors, including family offices and ultra-high net worth individuals.

The first fund will invest in six-eight mid-sized projects for affordable housing with a four-year development timeline and plotted projects of up to 1.1-1.5 million sq ft. The projects will be in Pune, Hyderabad, Bengaluru, Chennai, and Mumbai Metropolitan Region (MMR).

It is striving to accomplish the first close of Rs 200 crores in the next two months.

IFC and IFC Emerging Asia Fund collaborated with Puravankara to infuse $76 million into the latter’s affordable housing projects in India in 2020.

The most significant aspect of our business is the requirement for capital, and given how well Provident has performed, the company wanted to create a dedicated fund for it. As we raise these funds, they will be utilised to acquire land for the projects. The fund will have a revenue-sharing arrangement with Provident or Puravankara. The big idea is that Purva Asset Management will create different pools of capital going forward. Once this fund is raised, there would also be a second fund, managing director Ashish Puravankara told the media.

Bengaluru-based Puravakara is a sponsor of the fund, and the two will co-invest in projects and acquire land parcels.

There are protection clauses for the fund and its investors incorporated, including a price protection clause,Puravankara said. The revenue sharing kicks in as soon as a project is launched, as per the agreement. At the end of 66 months, which is the fund life, any residual investments will be bought back by Puravankara at a 12% pre-identified internal rate of return (IRR).

The fund will work at an arm’s length, and the firm is putting together a three-member advisory board.

Image Source

Also read: Puravankara arm to invest Rs 3,500 cr for expansion plan

Purva Asset Management Pvt Ltd, a subsidiary of real estate firm Puravankara Ltd, has launched a Rs 750 crore alternative investment fund (AIF) to infuse in affordable housing projects and plotted developments. Puravankara creates budget homes under the Provident brand, plotted projects under Purva Land, and premium housing under the Puravankara brand. The Category II AIF Purva Real Estate Fund, which recently got the mandatory Securities and Exchange Board of India (Sebi) approval, will be overseen by Purva Asset Management, and the first fund scheme is called Purva Residential Excellence Fund-1. It plans to raise Rs 500 crore for the fund, along with a Rs 250 crore greenshoe option from mainly domestic investors, including family offices and ultra-high net worth individuals. The first fund will invest in six-eight mid-sized projects for affordable housing with a four-year development timeline and plotted projects of up to 1.1-1.5 million sq ft. The projects will be in Pune, Hyderabad, Bengaluru, Chennai, and Mumbai Metropolitan Region (MMR). It is striving to accomplish the first close of Rs 200 crores in the next two months. IFC and IFC Emerging Asia Fund collaborated with Puravankara to infuse $76 million into the latter’s affordable housing projects in India in 2020. The most significant aspect of our business is the requirement for capital, and given how well Provident has performed, the company wanted to create a dedicated fund for it. As we raise these funds, they will be utilised to acquire land for the projects. The fund will have a revenue-sharing arrangement with Provident or Puravankara. The big idea is that Purva Asset Management will create different pools of capital going forward. Once this fund is raised, there would also be a second fund, managing director Ashish Puravankara told the media. Bengaluru-based Puravakara is a sponsor of the fund, and the two will co-invest in projects and acquire land parcels. There are protection clauses for the fund and its investors incorporated, including a price protection clause,Puravankara said. The revenue sharing kicks in as soon as a project is launched, as per the agreement. At the end of 66 months, which is the fund life, any residual investments will be bought back by Puravankara at a 12% pre-identified internal rate of return (IRR). The fund will work at an arm’s length, and the firm is putting together a three-member advisory board. Image Source Also read: Puravankara arm to invest Rs 3,500 cr for expansion plan

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?