AVREF invests Rs 40 cr for affordable housing project

Ties up with Vastushodh Projects for a project near Pune-Solapur highway

Mumbai- based private equity fund Avenue Venture Real Estate Fund (AVREF) has tied up with Vastushodh Projects (Company), a Pune based real estate producer, under which the former will invest Rs 40 crore in the latter’s affordable housing project near Pune–Solapur highway.

Vastushodh Projects has launched AnandGram project in a 22-acre plot for which AVREF has agreed to invest Rs 20 crore initially in the first instalment. The remaining Rs 20 crore, however, will be invested in the project later.

Started by two brothers Sachin and Nitin Kulkarni, Vastushodh Projects has been operational in affordable housing. The company operates under two brands ‘AnandGram’ and ‘UrbanGram’ for lower and middle income group customers. 'AnandGram' offers homes in the range of Rs 5-15 lakhs and 'UrbanGram' offers homes in the range of Rs 15-30 lakhs.

“The PE investment will indeed provide a major boost to affordable housing segment, which was not getting the desired attention of such investors so far. There is a big gap between demand and supply for houses in the range of Rs 5-30 lakhs in urban Maharashtra and such funding can help reduce the gap with a greater pace,” said Sachin Kulkarni, Managing Director, Vastushodh Projects.

“AVREF will be investing about Rs 40 crore in two different housing projects to be set up by Vastushodh of which the first one mentioned above has already been finalised and the process of land acquisition of the same has also been completed. All other pre launch formalities shall now be completed,” he added.

AVREF officials could not be reached for a comment.

Currently, the company has already completed construction of 1,700 housing units at multiple locations in and around Pune and is currently in the process of developing about 7.5 million square feet with over 13,000 units of affordable housing.

Vastushodh recently tied up with ACG Worldwide, world’s largest privately owned producers of pharmaceutical empty hard gelatin and HPMC capsules, for a joint development of housing colony for ACG Employees and for the development of an ‘UrbanGram’ project on 16 acres of land owned by ACG at Shirwal on Pune Satara Road. An ideal case if followed by other corporate entities having good land holdings will unlock land for affordable housing.

Avenue Venture Partners LLP (AVP), a real estate asset management company with the best in class expertise and experience in fund manager to AVREF. AVP was founded in September 2012, to manage a corpus of Rs 250 crore, to be invested in residential real estate projects across the country.