Qatar Holding to invest $250m in India housing
Qatar's Investment Authority is investing $250m in affordable housing in India, through its subsidiary, Qatar Holding
India’s state budget which was released last week, has granted infrastructure status to affordable housing projects, drawing interest from Qatar Investment Authority (QIA).
Through its subsidiary, Qatar Holding, Qatar’s sovereign wealth fund, QIA intends investing $250m in an affordable housing fund in India.
The fund is run by India's ArthVeda Fund Management, and the pronouncement comes on the back of the Indian government releasing its state budget, Reuters reported.
Released last week, the budget grants infrastructure status to affordable housing, which could grant developers lower financing interest rates, along with tax exemptions.
The fund will invest in cities throughout India, which needs to build 19 million housing units in the low and mid-income category by 2022, at a cost of $1 trillion, ArthVeda estimated.
The entire sum of $250m will be provided by Qatar Holding.
ArthVeda said that the investment targets an internal return rate of at least 18%, while QIA representatives were not available for comment to either an email or a telephone call.
The fund management firm forms part of Wadhawan Global Capital, a financial services corporation.
Another member of the group, Dewan Housing Finance Corp, has lent over $25bn to the affordable housing sector, the statement said.