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.
First of all I would like to thank you and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned it has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..
My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days...
It's a wonderful experience with the tennis academy and my daughter liked it. Also she is getting good training and love for the game.
The coaches are good and we would continue using their expertise for Nishita going onwards. We are also looking forward for signing (actually instrument) and dancing coaching too.
This is to share with you that both my little girls (Aditi Anisha) are really enjoying their Tennis classes at the Mahesh Bhupathi Tennis Academy.
I always find them very excited whenever there is TENNIS CLASS, and this excitement matters to both of us, as the kids seems to be interested.
It’s nice to see them constructively engaged, and coming home happy and having felt productive in their own child little way. It’s a great way for them to bond with other young ones and feel belonged to a larger community.
Thanks to You, Gera Developments and MBTA for giving our young ones, an opportunity for a wonderful learning experience.
Now they are looking forwar..
Regarding the workshops & different academy sessions, it has been wonderful experience so far for Shlok and we’re looking forward for the new opportunities.
It’s absolutely fantastic to have all these academies in the premises, and that too from the renowned personalities, so we can send kids without worrying about other factors like safety & all.
And most importantly, a big thanks to you for the lovely follow-ups & timely updates about the upcoming/ongoing sessions.