The government-backed and SBICAP Ventures-managed last-mile financing platform, Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I), has committed to invest Rs 160 crore in a project of Stans Buildtech Homes.
The slum rehabilitation project Sky Annex in Mumbai’s Chembur suburb was taken over by Stans Buildtech in 2016 and has been under development since then.
Several issues related to tenants, flat buyers, approvals, and lack of suitable financing to meet requirements led to the project being stalled, and is now set to resume, following this financing deal.
“This deal exemplifies SWAMIH Fund‘s commitment to understanding and resolving complex real estate situations. By providing solution capital, we are not only unlocking value for various stakeholders but also fulfilling our objective of supporting homebuyers. This transaction enhances our position as a key player in the Indian real estate market,” said Suresh Kozhikote, MD & CEO, SBICAP Ventures.
According to property consultant Colliers India that assisted Stans Buildtech Homes secure the funding, multiple rounds of negotiation were held with the landowner, developer, slum tenants, SRA Authorities, incoming investor, contractor, and flat buyers to work out a solution and resume the project.
“This financing transaction involved working on a situation which unlocked value for various stakeholders including landowner, developer, tenants, flat buyers. We worked closely with SWAMIH Fund to structure a financing solution,” said Piyush Gupta, MD, Capital Markets & Investment Solutions for Colliers India.
According to Stans Buildtech Homes’ MD Azizur Rehman Momin, following the financing support from SWAMIH fund the company’s objective is to complete the project in a timely manner.
Designated as a category II alternative investment fund, it was introduced by finance minister Nirmala Sitharaman in September 2019. This initiative emerged in response to escalating worries about stalled projects adversely affecting homebuyers and posing potential risks to the banking system.
In December 2022, the government invested over Rs 5,000 crore in this fund, taking its final close to Rs 15,530 crore. This is amongst the biggest corpus raised by any funds in the country.
India’s largest social impact fund’s investors include the government, which is the major sponsor to the fund, State Bank of India (SBI), Life Insurance Corporation of India (LIC) and HDFC.
This fund has been a crucial part of the measures taken up by the government to infuse liquidity in stressed projects to help homebuyers across the country get delivery of their stuck apartments.
