SWAMIH Fund Achieves Milestone of 50,000 Homes Completed Since 2019

                The Special Window for Affordable and Mid-
Income Housing (SWAMIH) investment fund 
has achieved a milestone by completing 
50,000 homes and aims to deliver 20,000 
homes 
every year for the next three years.
Funded by the finance ministry, the fund is 
designed for debt financing of stressed and 
brownfield residential properties. It was set up 
in 2019 and is managed by SBICAP Ventures 
Ltd, a State Bank Group company. It has no 
precedent or comparable peer fund in India or 
in the global markets.
"Milestones achieved: 50,000 homes 
completed under SWAMIH Fund. Transforming 
lives of homebuyers in stalled projects, 
redefining impact investing and setting 
benchmark in real 
estate," SBI Ventures said in a post on X.
The fund has raised Rs 15,530 crore so far with 
the aim of providing priority debt financing for 
the completion of stressed, brownfield, and 
Real Estate Regulatory Authority (RERA)-
registered residential projects that fall in the 
affordable and mid-income housing category.
The target corpus of the fund was Rs 12,500 
crore, with a green shoe option of Rs 12,500 
crore. The fund achieved its first close with a 
capital commitment of Rs 10,037.5 crore and 
its final close with a capital commitment of Rs 
15,530 crore on 6 December 2022.
The sponsor of the fund is the Secretary, 
Department of Economic Affairs, Ministry of 
Finance, Government of India, on behalf of the 
Government of India.
Since the fund considers first-time developers, 
established developers with troubled projects, 
developers with a poor track record of stalled 
projects, customer complaints, and NPA 
accounts, and even projects with litigation 
issues, it is regarded as the lender of last 
resort for distressed projects.
A study by PropEquity, commissioned by SBI 
Ventures Ltd in 2019, estimated that about 
1,500 projects with 4.58 lakh housing units 
were stalled or stressed and required 
aggregate 
funding of Rs 55,000 crore to complete the 
stalled projects.
In the upcoming Union Budget, real estate 
players expect increased fund allocation for 
stressed projects through the SWAMIH fund to 
improve liquidity in stressed residential 
developments.
Sharad Mittal, Founder & CEO of Arnya Real 
Estates Fund Advisors, said that on the 
financing front, developers seek easier access 
to credit and lower interest rates to ease 
liquidity 
challenges.
“Policies can be outlined for priority financing 
for affordable housing projects to incentivise 
the developers to take up such projects and 
bridge the demand-supply gap. Further 
investment through schemes such as SWAMIH 
(The Special Window for Affordable and Mid-
Income Housing) to enable the completion of 
stuck projects will instil confidence in buyers 
to make purchase decisions,” stated Mittal.

Source : The New Indian Media