Mumbai: Asset management firm ArthVeda Fund Management on Friday launched a Rs 2,000 crore fund –‘Asha’– focused at investing in low income housing projects.
“The Rs 2,000 crore fund will participate with multiple developers across India, including tier 2 and 3 cities, in the construction of affordable housing for low income households,” the company said in a statement here.
The company has already launched a fund ‘Star’, focused on providing funds for middle income housing (MIH).
“Asha has been in the making for some time after the success of the Star fund, which is focused on providing funds for middle income housing projects. The launch of the new fund coincides with announcement of the Pradhan Mantri Awas Yojna (PMAY),” company’s Chief Executive Bikram Sen said.
ArthVeda, an associate firm of Dewan Housing Finance Corp (DHFL), is specialised in low and middle income housing projects. Its Star fund exclusively invests in MIH projects and is achieving IRRs of over 30 per cent, the
company said.
Star fund has now been scaled up and opened to foreign investors with the launch of Star Fund II with a targeted AUM of Rs 1,500 crore, it said.
“Asha fund will be done in conjunction with DHFL and Aadhar Housing Finance, through which ArthVeda has access to a ground force of more than 5,000 personnel and relationship with 300 builders across 736 locations in India,” Sen said, adding the expertise of the Group companies and a vast ground force will enable it to significantly reduce investment risks