IFC, a member of the World Bank Group, and IFC Emerging Asia Fund (EAF) have partnered with the Puravankara Group, a real estate conglomerate, to invest $76 million in the development of up to four residential projects under the ‘Provident’ brand that is focused on affordable housing.

Two of these four projects are planned in Kochi and Bengaluru with a saleable area of 4.5 million sq ft. About 4,000 housing units will be built in the next 5-7 years, with other projects to be identified by 2021, a press statement from Purvankara said.

Ashish Puravankara, Managing Director of Puravankara Group, said, “IFC’s investment supplements Provident’s own investments in both existing and new developments. Provident’s use of pre-cast technology will see an acceleration in both time and superior quality homes."

IFC, together with EAF will invest up to ₹556 crore (approximately $76 million) in special purpose vehicles set up by Puravankara Group. This will comprise investment of ₹240 crore (approximately $33 million) by IFC and an equal amount by EAF, along with a loan of ₹76 crore (approximately $10 million) from IFC.

The Kochi project will be designed as per IFC’s green building certification system, EDGE (Excellence in Design for Greater Efficiencies).

“In a post COVID world, the housing sector can play a key role in India. Financing affordable and green housing can protect jobs, preserve livelihoods, and address climate change while restarting economies,” said Jun Zhang, Country Head-India at IFC.