SCPE, IFC, ADB back India affordable housing JV

The venture will receive a capital commitment of $200 million and develop about 20 million square feet of affordable housing across Mumbai, Pune, Delhi National Capital Region, Chennai, Kolkata, Bangalore and Ahmedabad, over the next eight years.

Shapoorji Pallonji will provide 30% of the capital while the balance will come from SCPE, IFC, and ADB. IFC previously disclosed that it was putting in $35 million, while SCPE and ADB are contributing around $105 million.

The platform will focus on project sizes of 1.2-5 million sq ft across tier one and tier two cities. This is SCPE's first investment in India since it committed INR5 billion ($83 million) to the power grid subsidiary of Sterlite Technologies.

Shapoorji Pallonji is owned by Pallonji Mistry, the single-largest shareholder of Tata Group's holding company Tata Sons. The firm also has a commercial realty tie-up with Canadian Pension Plan Board (CPPIB). 

Elsewhere in the affordable housing space, Fullerton India Credit Company (FICC), the non-banking financial company (NBFC) owned by Singapore's Temasek Holdings, recently set up a new unit offering home financing.

Dutch pension fund APG also has a debt funding platform with Godrej Properties and Piramal Enterprises for residential projects, and WestBridge Capital Partners last year invested INR980 million in India Aptus Value Housing Finance, an affordable housing finance company.

Meanwhile. GIC Private has formed a $247 million joint venture platform for residential properties in Southern India with developer Brigade Group last September.

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• Topics
• Real estate
• South Asia
• Expansion
• Real estate
• Asian Development Bank
• IFC
• Standard Chartered Private Equity
• India
• Growth capital