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IFC to back Delhi-based developer Ashiana Housing

By Swet Sarika

  • 07 Nov 2017
IFC to back Delhi-based developer Ashiana Housing
Credit: Thinkstock

International Finance Corporation, the investment arm of World Bank, has agreed to invest $41 million (Rs 266.6 crore) in projects of Delhi-based developer Ashiana Housing.

IFC will put in around $23 million across special purpose vehicles (SPVs) which are developing affordable, mid-income and senior living housing. The remaining $18 million will be in the form debt for general corporate purpose, it said in a statement.

Ashiana Housing focuses on affordable, mid-income and senior citizen housing across cities such as Delhi-NCR, Jaipur, Gujarat and Jamshedpur, among others. It clocked revenue of Rs 323 crore for financial year 2016-17 against Rs 458 crore in the previous year. Its profit fell to Rs 72.77 crore from Rs 110 crore.

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According to the company’s latest investor presentation, area booked fell to 1.05 lakh sq ft in the second quarter of FY2017-18 from 2.41 lakh sq ft in the year-ago period.

The investment comes soon after private equity firm Creador, which had backed the company back in 2015 with an investment of Rs 100 crore, part exited, clocking a loss. It had picked around 5% stake in Ashiana for Rs 100 crore and sold around 2%.

Meanwhile, IFC’s new investment in the real estate space comes soon after IFC said it plans to invest about $50 million (Rs 321 crore) to help Mahindra Lifespace Developers Ltd set up three industrial clusters.

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Prior to this, IFC has backed a bunch of developers and firms for promoting affordable housing in India. In April last year, it said it will invest up to $38 million in three housing finance companies in India, as the World Bank’s private-sector lending arm seeks to expand its presence in a segment that offers loans for low-cost houses.

The investment in Aspire Home Finance Corporation, Micro Housing Finance Corporation and Aptus Value Housing Finance India Ltd will be through non-convertible debentures.

In 2015, it had also set up a platform with alternative investment firm The Xander Group for commercial properties.

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