The Special Window for Affordable & Mid-Income Housing (SWAMIH) fund has approved approximately Rs 340 crore for the completion of a stalled real estate project by the Vatika group in Gurgaon, three people familiar with the development told ET.
The project, spanning 14 acres, boasts a saleable area of 1.4 million square feet. Initiated nearly a decade ago, it comprises approximately 640 apartments, with 150 units sold prior to SWAMIH’s involvement.
“There are numerous projects in NCR that can benefit from funding. We conduct thorough due diligence before committing to financing. The Vatika project still has significant development remaining, hence necessitating a substantial amount for completion,” said one person aware of the development.
After the intervention of SWAMIH, the price of the project has increased significantly, and buyers are also keen to invest.
“We are experiencing a steady influx of buyers, and the investment from SWAMIH has contributed to fostering a positive sentiment. While the structure for the majority of Phase-1 was already in place, construction has also commenced for Phase-2,” said Shiwang Suraj, Founder and Director of Inframantra India Pvt. Ltd., which is tasked with selling the project.
Phase 1 of the project should begin offering possession by October 2024, and the developer expects to complete the project by January 2026.
SWAMIH had earlier approved Rs 207 crore for the completion of a stalled real estate project in Greater Noida, leading to the time-bound delivery of houses to 1,000 home buyers in the Sikka Kimaya Greens project.
The SWAMIH Fund has approved funding for over three dozen projects in the national capital region.
SWAMIH Investment Fund has been formed to complete the construction of stalled, brownfield, RERA-registered residential developments that are in the affordable housing/middle-income category and are also net worth positive.
All asset classes felt the impact of liquidity issues, but the residential real estate segment suffered the most.
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.