Shapoorji Pallonji’s affording housing platform to have $30 M funding from IFC
Civil construction and real estate major Shapoorji Pallonji and Company Ltd is likely to get a major boost for the development of affordable housing project. The private investment arm of World Bank, International Finance Corporation (IFC) is likely to lend it $30 million for the task.
Bigger Plan
SPCL has big plans for the future. The company is planning an investment of $200 million in developing a platform which will help develop 15-17 million square feet of housing projects in India. The same will be developed across a period of next eight years. The gain for SPCL can be gauged from the fact that the company will be contributing only 30 percent of the capital involved. Rest of the 70 percent will be contributed by IFC.
The housing project is likely to spread across the country and will have housing units across large and small metro cities like Pune, Mumbai, Indore, Gurgaon, Ahmedabad, Faridabad, Manesar, Neemrana and Kanpur among a host of other cities and towns.
SPCL is a specialized company and offers services in categories like general contracting, engineering procurement, construction services and conventional contracting.
It is not as if Shapoorji has not tested the ground in the affordable housing segment previously. It was only last year that SPCL had entered the affordable housing segment market. It had built affordable houses in locations as Kolkata and Rajarhat. The same were designed in collaboration with SP Shukhobrishti.
This is a company led by billionaire Pallonji Mistry, who happens to be largest shareholder of Tata sons. Noticeably, IFC has been making considerable investments in affordable housing sector development in India. Last year around only, IFC had made an investment of $25 million to Smart Value Homes Limited. This is a branch company of Tata Housing Development. IFC had also invested $11.06 million in Jerry Rao’s budget housing corporation. It had made this investment through equity route.
IFC has also been supporting various housing corporations in India and this includes those companies too which have been working towards providing affordable housing.
Affordable houses, demand for affordable houses, International Finance Corporation, Shapoorji Pallonji, SPCL, Tata Housing Development
