By 2019, the Indian Real Estate faced a major issue of an estimated $63 billion of stalled projects due to fund crisis because of which builders were unable to service their loans, forcing banks to write off the debts and worsen what was already one of the world’s biggest bad-loan piles. 

 

To address this issue, in November, 2019, the central government launched the ‘Special Window for Funding Stalled Affordable and Middle-Income Housing Projects’ or ‘SWAMIH’ Scheme. The objective of the scheme is to provide priority debt financing for stalled, brownfield, RERA registered residential projects falling under the affordable and middle-income housing categories, are net worth positive and require last mile funding to complete construction. The central government, in a Press Information Bureau release, stated that the SWAMIH fund was launched to provide relief to real estate developers that require last mile funding for their unfinished projects and consequently ensure the timely delivery of homes to the home-buyers.

 

As the Investment Manager of the SWAMIH fund, SBICAP Ventures Limited (SVL) which is a wholly-owned subsidiary of the State Bank of India is responsible to undertake fund-raising, carrying out investments and managing the fund team. 

 

All the investment and divestment decisions of the Fund are taken by an Investment Committee (IC) comprising of the Chief Investment Officer and Chief Executive Officer of SVL, and up to 5 external members. As per the Ministry of Finance - Annual report 2020-21, as on Dec’20, 135 deals have got preliminary approval from the IC of which 36 have final approval and the fund has disbursed INR 583.3 Cr in 17 deals and activated construction in completing `9500 homes. 

 

SILA’s Role:

 

The SWAMIH Fund’s highest compliance standards and attention to details require a great deal of due diligence and legwork to see to completion. SILA’s real estate advisory team’s contribution to these projects is two-pronged. As one of the real estate project due diligence consultants to the fund, we validate the accuracy of the various metrics that are presented to the fund and ensure nothing is amiss. Upon funding of projects, we are also responsible for project management through monitoring day-to-day activities and monitoring the successful completion of the projects associated with the fund.

 

Value Created:

 

SILA began working with the SWAMIH fund in the middle of the first nationwide lockdown in April 2020. Ever since we have been responsible for the Technical Due Diligence & Valuation of several projects across India. Apart from the major cities like Mumbai, Bengaluru and Gurgaon, SILA also provided services of projects in Bhopal and Dehradun. Currently SILA’s real estate advisory team is also  involved in the project management and monitoring of few where the fund has made investments. We endeavour to continue our work with complete transparency and efficiency to help secure the futures of homeowners across the country.

 

At SILA, we hold ourselves to the highest manner of excellence in our real estate advisory and project management services. With over 65 million square feet of real estate assets across Commercial, Industrial, Retail, Hospitality and Residential sectors under our care, SILA is one of the nation’s leading project management consultants and facility management companies.