ABU DHABI Feb 6 Qatar Holding, a subsidiary of
sovereign wealth fund Qatar Investment Authority, plans to
invest $250 million in an affordable housing fund run by India's
ArthVeda Fund Management, the Indian firm said on Monday.
The decision follows the Indian government's release of a
state budget last week which grants infrastructure status to
affordable housing. This could give developers access to
financing at lower interest rates as well as tax exemptions.
Qatar Holding will provide all the money in the $250 million
fund, which will invest across cities in India and aim for an
internal rate of return of at least 18 percent, ArthVeda said.
Representatives of QIA did not immediately respond to an email
and a telephone call seeking comment.
India needs to build 19 million urban housing units in the
low and mid-income category by 2022, requiring capital of $1
trillion, ArthVeda estimated.
The fund management firm is part of Wadhawan Global Capital,
a financial services conglomerate; another group member, Dewan
Housing Finance Corp, has lent over $25 billion to the
affordable housing sector, the statement said.
(Reporting by Stanley Carvalho; Editing by Andrew Torchia/Keith