SWAMIH Investment Fund have so far raised Rs.15,530 crore to provide priority debt financing for the completion of stressed, brownfield, and residential projects that are registered with the Real Estate Regulatory Authority (RERA).
What is the SWAMIH investment fund?
The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund created with the objective of completing stressed and stalled Real Estate Regulatory Authority (RERA) registered projects.
This is a government-backed fund that was set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and launched in 2019.
The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.
The fund is considered as the lender of last resort for distressed projects because it funds 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 where there are litigation issues.
Alternative Investment Fund (AIF):
AIF refers to any fund created or incorporated in India that is a privately pooled investment vehicle that collects funds from professional investors, whether they are domestic or foreign, for the purpose of investing them in accordance with a defined investment strategy for the benefit of its investors.
AIF does not include funds covered under the SEBI (Mutual Funds) Regulations, 1996, SEBI (Collective Investment Schemes) Regulations, 1999 or any other regulations of the Board to regulate fund management activities.
One of the biggest domestic real estate private equity teams, SWAMIH Fund is solely dedicated to supporting and overseeing the completion of distressed housing projects.
Creation of numerous auxiliary industries: The Fund, which was successful in unlocking more than Rs. 35,000 crores in liquidity, has also significantly contributed to the creation of numerous auxiliary industries in the real estate and infrastructure sectors.
Over 130 projects with sanctions totalling more than Rs 12,000 crore have received final approval from SWAMIH to date.
In 30 tier 1 and 2 cities, the Fund has finished 20,557 homes, and its three-year goal is to complete over 81,000 dwellings.