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Central Government invests Rs 5000 crore in stressed realty fund; details here

The central government has invested Rs 5,000 crore into the SWAMIH Invest Fund-I designated for stressed real estate projects, allowing it to attain its ultimate close at Rs 15,530 crore, as per the fund management SBI Capital Ventures. Presently, the fund is assessing 286 projects in more than 30 cities that would build over 100,000 residences. The fund’s investment team has grown to 33 employees since its start, and they have assessed more than 1,000 projects around India.On 6 December 2019, the fund’s inaugural closure saw a commitment of Rs 10,037.5 crore. The government had announced plans to invest Rs 10,000 crore in the project and initially contributed Rs 5,000 crore. Now, the remaining Rs 5,000 crore has been transferred to the fund. The government’s new funding will allow SWAMIH Invest Fund-I to keep assessing contracts through December 2024.According to Irfan A. Kazi, chief investment Officer of SWAMIH Investment Fund, this round of capital infusion stands as a key step in its mission to deliver a much-needed boost to the nation’s real estate market. The Fund has now completed the construction of 19,500 homes and is on target to build around 20,000 residences every year for the upcoming three years.The largest social impact fund in India, SWAMIH Investment Fund I, was established under the particular window for affordable and mid-income housing with the goal of providing priority debt financing for the completion of stressed, brownfield, and RERA-registered residential projects that come under the category of affordable and mid-income housing.SBICAP Ventures Ltd. is in charge of managing the fund, which is supported by the union ministry of finance. Along with the Life Insurance Corporation of India (LIC), the State Bank of India is an anchor investor in the fund. Other investors are HDFC Ltd and major nationalised banks.Further, a January 2021 report stated there had been continuous improvement in the overall proportion of resolved corporate insolvency resolution processes (CIRPs) sequentially. Only 33 per cent of the 209 real estate CIRPs that had been registered between July and September 2018 had been closed, while more than half of the 793 total cases between July and September 2020 have been resolved.Even though just 5 per cent of Insolvency and Bankruptcy Code (IBC) cases involve real estate, this category has one of the poorest success rates. The results of a joint report by ANAROCK and law firm Khaitan & Co. demonstrate that IBC has encouraged financial creditors in real estate to recognise superior value, with this class of creditors recognizing 66 per cent of the admitted claims as opposed to just 31 per cent of admitted claims realised in other sectors.Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

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Published on : 2022-12-09 06:56:23

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