The Special Window for Affordable & Mid-Income Housing (SWAMIH) fund has approved around Rs 340 crore to complete a stalled real estate project by the Vatika group in Gurgaon, according to sources familiar with the matter. This project, covering 14 acres with a saleable area of 1.4 million square feet, was started nearly a decade ago and includes about 640 apartments. Before SWAMIH’s involvement, 150 units had been sold.
An insider mentioned that many projects in the NCR could benefit from such funding, but thorough due diligence is conducted before committing. The Vatika project still requires significant development, hence the substantial financial support needed.
With SWAMIH’s intervention, the project’s value has significantly increased, attracting more buyers. Shiwang Suraj, Founder and Director of Inframantra India Pvt. Ltd., responsible for selling the project, noted a steady influx of buyers and positive sentiment fostered by the investment. Phase 1, mostly structurally complete, is set to offer possession by October 2024, with the entire project expected to finish by January 2026.
Previously, SWAMIH approved Rs 207 crore for completing a stalled project in Greater Noida, resulting in timely delivery of homes to 1,000 buyers in the Sikka Kimaya Greens project.
Overall, the SWAMIH Fund has backed over three dozen projects in the NCR. Established to complete stalled, brownfield, RERA-registered residential developments in the affordable/middle-income category that are net worth positive, the fund addresses liquidity issues impacting the residential real estate segment.
In November 2019, the central government announced a Rs 25,000 crore special window to help complete over 1,500 stressed housing projects comprising around 458,000 units. This initiative targets under-construction, stressed residential real estate assets, including those declared non-performing and admitted to insolvency proceedings.
