The Special Window for Affordable & Mid-Income Housing (SWAMIH) fund has approved about Rs 207 crore for the completion of a stalled real estate project in Greater Noida, three people aware of the development said.
The last-mile funding, first instalment for which released recently, will lead to time-bound delivery of houses to 1,000 home buyers at Sikka Kimaya greens.
“The project registered on the name of Eco green Buildtech was started by Sikka group but stuck midway. The builder had a due of Rs 74 crore of which it has paid Rs 41 crore from the first instalment,” said a Greater Noida authority official.
SWAMIH fund has approved funding for over 30 projects in NCR and this is the third project in Greater Noida to receive funding.
“This was a difficult project to fund and road ahead is also difficult. We will need support of homebuyers and authority to complete the project,” said Irfan A Kazi, CIO at SWAMIH Investment Fund.
The project was launched in 2014 and was supposed to be delivered by 2020.
“We were managing the construction but covid impacted the project. With the fund we will start delivering units three months from now and will complete the project within 18 months,” said Harvinder Singh, managing director of Sikka group.
In August, the fund had approved Rs 90 crore for completion of a stalled real estate project in Meerut.
That project was also started by NCR-based Sikka Group, which formed a joint venture with a local land owner. The project, Sikka Krissh Greens, was being developed under the company name of Navgrah Developer, which was later taken over by an individual investor.
SWAMIH Investment Fund has been formed to complete construction of stalled, brownfield, RERA-registered residential developments that are in the affordable housing/mid-income category and are also net worth positive.
While the impact of liquidity issues was felt across all asset classes, the residential real estate segment was the hardest hit.
To mitigate this impediment, in November 2019 the central government announced a Rs 25,000-crore special window to help complete over 1,500 stressed housing projects comprising around 458,000 housing units.
This move was directed towards stressed residential real estate assets under construction that are yet to be completed, including those that have been declared non-performing assets and have been admitted to insolvency proceedings.