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The Special Window for Affordable and Mid-Income Housing (SWAMIH) investment fund has completed over 20,000 homes worth ₹12,000 crore since the initiative was launched in 2019. Funded by the Union finance ministry, the fund is aimed at debt financing of stressed, brownfield residential properties.
Repossessed properties from a defaulting borrower are called stressed properties, and they are purchased at discounted price for the purpose of reviving the outstanding loan amount. Brownfield properties are previously developed land that is not in use currently due to various reasons ranging from soil contamination, hazardous waste and pollution.
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What is SWAMIH investment fund?
Launched in November, 2019, with an objective to complete stressed and brownfield properties registered under Real Estate Regulatory Authority (RERA), SWAMIH investment fund is a government-funded initiative and it is managed by the State Bank Group’s SBICAP Ventures Limited.
The project identifies established developers with poor track record of stalled projects, NPA accounts, customer complaints even projects with litigation issues along with first-time developers as lenders.
SWAMIH fund has one of the largest domestic real estate private equity teams that are focused on monitoring and funding the completion of stressed residential properties, according to the Cent
What is the update on the fund?
Around 130 projects completing a total of 20,557 homes have been approved under this project. The cost ranged over ₹12,000 crore so far. It aims to complete over 81,000 homes in a three-year duration across tier 1 and 2 cities.
According to a government statement, the fund has completed the construction of 26 projects and generate returns for its investors. “The Fund has also played a critical role in the growth of many ancillary industries in real estate and infrastructure sector having successfully unlocked liquidity of more than Rs. 35,000 crore,” it said.
So far, it raised a total of ₹15,530 crore.
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