investment arm of IDFC plans to raise $250 million during March-April
to meet the funding requirements of the affordable and mid-market
housing segments in the light of the government’s housing for all
plan by 2022.
A senior official close to the development said, “We are in the process of raising a $250 million fund with a tenure of eight years in the month of March and April. We believe there are strong prospects in the segment as a number of investors have shown interest in affordable housing. The demand for affordable housing is expected to grow at a phenomenal rate with government promising housing for all.”
In the real estate business, IDFC Alternatives is focussed on medium to long-term investments in office and residential segments across India.
However, the emphasis on affordable housing presents a good opportunity for the company to participate in future growth of this business as well.
“We are exploring opportunity in this space and it would depend on the projects and the enablers such as associated policies. We may even look at funding these projects through IDFC Bank in future,” Sunil Kakkar, chief financial officer of IDFC had told Financial Chronicle recently. The company got a banking license in April this year.
Ashish Joshi, chief executive officer of Landmark Capital Advisors, a Mumbai-based private equity house, believes growth of funds in the affordable housing segment would depend on real demand, as there are still too many challenges in terms of land price that constitutes more than 50 per cent of the cost. The fixed cost of raw materials and resources makes it very difficult to reduce the cost of project.
“Strong government support would be required since some preferred technological changes such as prefabricated materials have not gained traction as much as desired. Setting up affordable housing projects in nondescript areas should be convenient with all facilities otherwise it would be difficult to find buyers. At the end of the day funds are meant to provide good returns to the buyers,” said Joshi, a former managing partner who ran the real estate investments arm of Milestone Capital.
The company in October 2014 closed its $900 million India Infrastructure Fund II with strong participation from foreign institutional investors, who showed faith in India’s infrastructure growth story.
IDFC manages a corpus of $1.3 billion under three private equity funds in areas such as infrastructure service providers like telecom, airlines, shipping, transportation, tourism, clean technologies, equipment manufacturers and infrastructure commodities such as coal mining, oil and gas, E&P and enablers like EPC contractors and consultants.
The three PE funds are India Development Fund, a $192 million fund; IDFC Private Equity Fund II, a $440 million fund; and IDFC Private Equity Fund III, a $644 million fund.
I’ve been a sports person, and also captained my throwball and volleyball teams. I understand the importance of extracurricular activities in our growing up years.
Trainings provide a child with the required discipline when working within teams as well as gives one the chance to follow what makes you happy. It also enables an overall development!
Dance has been my passion since I was a child and I have been thrilled to see both my little ones have this in their genes too.
This opportunity really came to my doorstep through Gera. My daughters Lavanya and Diya have had an enthralling experience being a part of not just one but three Academies (The Shiamak Davar Dan..
I cannot thank you enough for making our journey with Gera so so interesting and mind-blowing. I had never ever imagined my life taking a beautiful turn with me beginning to start my career as a music teacher that too with SMA (Shankar Mahadevan Academy) and all this has been possible only because of GERA and YOU my dear.
It is only because of your efforts and kind gesture that I could meet the man himself (Shankar Ji) and have a small recording session with him. That was like a dream come true.
I am super excited to start my journey with SMA and Gera as a teacher now.
Apart from that, Me and Prateek have always been grateful to you for making Shiamak happen for us and I ..
It was indeed a pleasure being a part of the Christmas celebrations at Astoria. Kudos to the Gera team for bringing in such a wonderful event with great carol singing participation from our own kids. It brought in the spirit of Christmas and the games, Santa, the gifts only added to it. Thanks for organising such a wonderful event which helped in community building...looking forward to many more such celebrations!..
The Christmas event organised at Astoria was a big success and a big step in bridging the gap between us and Gera. It was a memorable event as we are still in the beginning of our journey of life in our little home at Astoria. The kids have been the happiest of all and what more can we ask for when we see smiles on the faces of our little ones. Kudos to you and your team for making this event a huge success! Looking forward to many more in the years to come...
The Christmas party organised by Gera at Astoria this year was a great success with good participation from kids and parents. Our children Sia and Saish enjoyed the party to the fullest. Sia, in particular, had a gala time and reiterated her stand that Anita aunty's parties are THE BEST.... We as your customers take much pride in informing our friends that such goodwill gestures are one of the many differentiators Gera brings to us, which no other builder in Goa can boast of. Many thanks to you and your team for doing an excellent job in putting up this event. We look forward to the next one! A big thanks to the Gera Management for its efforts in community building...