 "IFC will invest $25 mn along with Tata Value Homes to finance affordable housing project")
The project will help bridge the country's significant housing deficit, said the press release from the company. IFC's investment will provide Tata Value Homes with long-term capital to develop about 16,800 homes over the next ten years.
"Our partnership with IFC will help increase availability of affordable, value housing in India," said Brotin Banerjee, CEO and MD, Tata Housing. "Tata Value Homes believes that owning a home is often a catalyst for people to improve their lives. Over the past few years, we have delivered over 5,000 apartments in the price range of $8,000 to $50,000 (Rs 5,00,000 to Rs 30 lakhs) across various townships. This partnership with IFC will help us become India's largest home provider in the value and affordable housing segment by 2018-19."
Lack of adequate housing is a major challenge facing emerging markets today. In India, urbanization, the increasing number of nuclear families, and rising incomes are boosting demand for housing. There is an estimated shortage of more than 19 million housing units, primarily in underserved urban areas.
"Tata Value Homes will help lower and middle-income households and young professionals in urban and semi-urban areas access quality, affordable housing," said Vipul Prakash, IFC's Director, Global Corporate Coverage. "IFC's investment is the first step towards a longer-term partnership to facilitate the development of affordable housing in India and other emerging markets."