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

Next Story
Infrastructure Transport

Railway stations in Prayagraj undergo major passenger facility expansion

The Railway Board Chairman and CEO, Satish Kumar, conducted an extensive inspection on Saturday alongside the General Manager of Northern Railway and the officiating General Manager of North Central Railway. Their visit focused on various ongoing projects at multiple stations across the Northern and North Central Railway zones, with particular attention to enhancing facilities for the upcoming Maha Kumbh. During the inspection, Chairman Kumar reviewed the construction of a vital bridge over the River Ganga, specifically between Jhunsi and Prayagraj Rambagh. This bridge is expected to significa..

Next Story
Infrastructure Transport

Madurai-Thoothukudi broad gauge line works under review

The construction of the Madurai-Thoothukudi broad gauge line, which includes the crucial Melmarudur-Tiruparankundram project, is currently under careful review. This update comes from Southern Railway's assistant public information officer, J Kumarasubramanian, following an RTI inquiry made by a concerned citizen, Dayanand Krishnan. The new broad gauge line is projected to cover a total length of 143.5 km, with the initial 18 km stretch between Milavittan and Melmarudur completed and sanctioned by the Commission of Railway Safety on March 8, 2022. While substantial progress has been made on t..

Next Story
Real Estate

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Realty giant DLF is projecting impressive revenue of Rs 26,000 crore from its newly unveiled super-luxury project, The Dahlias, situated in the heart of Gurugram. Ashok Tyagi, the Managing Director of DLF, shared these insights during a recent conference call with market analysts, highlighting the project's potential amidst rising demand for high-end residential properties. The Dahlias project spans an expansive 17 acres and is set to feature approximately 420 ultra-luxury apartments, each boasting a minimum size of 10,300 square feet. This ambitious development has already garnered significan..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000