AVCJ

India's Essel Finance commits $11m to housing developer

  • LinkedIn  
  • Google plus  
  • Save this article  

The private equity arm of India's Essel Finance has invested INR400 million ($6 million) across two housing projects by Mumbai-based developer Rashmi Housing, and will invest another INR350 million in a third project.

The first tranche of the investment was in Rashmi's Signature and Pink City projects; the third project has not been disclosed, according to VC Circle. All three are in Mumbai, and are aimed at providing affordable to mid-priced housing in light of rising Indian property prices.

Essel has shown increasing interest in India's affordable housing sector. It invested INR400 million earlier this year in a construction project by Maple Group in Pune, and plans to commit another INR400 million to additional projects over the next two quarters.

"Keeping the current market scenario in mind, focusing on affordable housing segment makes a lot of sense, as there is still high demand in this segment and the government is also focusing on this segment," Abhinav Bhushan, chief executive of private equity at Essel, told Livemint.

Essel's investment was made in the form of structured debt from its first real estate fund. The firm launched the fund in 2013, targeting a fund size of INR5 billion. It focuses on last-mile funding, mostly in the form of debt financing, to residential projects in large cities.

  • LinkedIn  
  • Google plus  
  • Save this article  

More on South Asia

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs