Puravankara launches Rs 750 cr fund for affordable housing projects

22 Apr 2022 CW Team

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

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..