The government-supported and SBICAP Ventures-managed SWAMIH I, a last-mile financing platform, has recently invested approximately Rs 300 crore in Hubtown’s residential project located in the Ghatkopar suburb of Mumbai, according to sources familiar with the matter.
The project, named Rising City, is strategically situated near the Eastern Express Highway and comprises six towers with a total of over 700 apartments, out of which 550 units have already been sold.
“The financing transaction was finalized recently, and the initial funds have already been utilized to expedite the completion of the project, benefiting more than 550 homebuyers eagerly awaiting possession of their apartments,” one of the sources mentioned.
Initially launched in 2013, the project faced delays in delivery due to regulatory hurdles related to height approvals in 2016, despite being slated for completion in 2020. However, in 2023, the necessary approvals were obtained, paving the way for progress.
Originally a joint venture involving Hubtown, private equity fund IIRF, and three other developers, the project saw the exit of the other partners and funds, leaving Hubtown as the sole developer.
“This funding reflects our commitment to ensuring a mutually beneficial outcome for all stakeholders, and we are dedicated to expediting the project’s completion,” stated a spokesperson from Hubtown, responding to queries from ET.
Mumbai, being India’s largest and most expensive property market, has experienced robust demand and sales activity in recent years. This positive trend has facilitated the revival of numerous projects across the city.
ET’s attempts to reach SWAMIH Fund for comments remained unanswered at the time of publication.
Introduced by Finance Minister Nirmala Sitharaman in September 2019, the SWAMIH Fund was established as a category II alternative investment fund to address concerns about stalled projects affecting homebuyers and posing risks to the banking system.
In December 2022, the government injected over Rs 5,000 crore into the fund, bringing its total value close to Rs 15,530 crore, making it one of the largest funds in the country.
Investors in this significant social impact fund include the government, State Bank of India (SBI), Life Insurance Corporation of India (LIC), and HDFC.
The SWAMIH Fund has played a pivotal role in the government’s efforts to inject liquidity into distressed projects, thereby facilitating the delivery of stuck apartments to homebuyers nationwide.
Read in details: Mumbai Real Estate Shines Bright: March Sees Resilient Sales Amidst Market Challenges