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IFC, a member of the World Bank Group, and IFC Emerging Asia Fund (EAF) have partnered with the Puravankara Group to invest in the development of up to four residential projects under the 'Provident' brand which will focus on affordable housing. Two of these four projects are planned in Kochi and Bengaluru with a saleable area of 4.5 million sf/ft. Puravankara added that about 4,000 housing units will be built in the next five to seven years, with other projects to be identified by 2021.
IFC and EAF's partnership will allow for quick scaling-up of the company's vision to provide access to high-quality affordable housing across India, especially among first-time homebuyers. It will also help address the acute urban housing shortage in the country, with Indian cities needing to accommodate up to an estimated 18 million new urban dwellers per year.
IFC, together with EAF will invest up to Rs 556 crore (approximately $76 million) in special purpose vehicles set up by Puravankara Group. This will comprise of an investment of Rs 240 crore (approximately $33 million) by IFC and an equal amount by EAF, along with a loan of Rs 76 crore (approximately $10 million) from IFC.
Commenting on the development, Ashish Puravankara, MD of Puravankara Group said: "This strategic partnership aims to address the growing demand for housing in India by providing customers with affordable quality homes. IFC's investment supplements Provident's own investments in both existing and new developments. Provident's use of pre-cast technology will see an acceleration in both time and superior quality homes."
Puravankara is a leading real estate conglomerate with pan India presence.
On a consolidated basis, the realty major reported a net loss of Rs 9.81 crore in Q2 September 2020 as compared to a net profit of Rs 27.5 crore posted in Q2 September 2019. Net sales tumbled 65.4% year on year to Rs 211.82 crore in Q2 September 2020.
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