Ashiana Housing, IFC explore co-investment in middle income residential projects
Ashiana Housing Limited (AHL), an Indian real estate development company, and World Bank’s International Finance Corporation (IFC) are jointly studying a proposal for co-investing in senior living projects and other upcoming middle income residential projects.
The proposal expects an overall investment of INR 225 crores to be made on a project-to-project basis by IFC, which will be 40 percent of the capital required by a project. The remaining 60% capital needed, which amounts to INR 337.5 crores will be provided by Ashiana Housing.
Although the due diligence process was completed, the investment plan is awaiting approval by the IFC’s board.
Prior to that, Ashiana Housing and IFC had signed an agreement in March 2018 to jointly invest in future affordable and middle-income housing projects, as well as senior living facilities.
The agreement contemplated an overall cost of INR 150 crores by IFC and INR 225 crores from the real estate development company.
As of now, IFC has invested INR 142.14 crores in three projects, said Ashiana Housing.