Financial service provider IIFL Home Finance has invested Rs 50 crore in Eon Group's affordable housing township in Thane near Mumbai, the company said on December 16.
The investment, in the form of senior-secured construction debt, would be done in Phase II of Riverwood Park, which is spread over 42 acres along the Kalyan-Shil Road, and will help in developing over 7 lakh square feet area. A senior debt is backed by additional assets so that if the loan goes into default, the assets can be sold to cover the debt.
"The pricing of the apartments in Phase II starts from Rs 40 lakhs and is set to be completed by December 2025. Additionally, the planning for Phase III will commence within 12 months," Eon Group Managing Director Palash Shah told Moneycontrol.
Phase II has five high-rise residential towers with 24 floors offering 1 and 2-BHK homes and over 60 percent of the inventory has already been booked, the company said. The Phase III of the project would be developed across 15 lakh sq ft.
“The Kalyan-Shil Road Belt/Dombivli market region has witnessed a remarkable evolution in recent years and we are proud to have been one of the earliest developers to have entered the market since the mid-90s," Eon Group chairman Bharat Shah said in a press statement.
The investment required to target an IGBC Gold rating is well-aligned with the company’s push to become a more environmentally conscious organisation and aim to reduce carbon footprint, Shah said.
Affordable housing is aimed at buyers whose income is below the median housing income. In India, the price brackets start at about Rs 30 or Rs 40 lakh, depending on the carpet area.
Real estate consultant JLL’s Home Purchase Affordability Index (HPAI) 2022 report said with rising interest rates and inflationary pressures, house affordability was likely to erode further in 2023.
Mumbai's affordability is expected to slip, while Kolkata will remain the most affordable. Kolkata, Hyderabad, and Pune continue to remain most affordable cities in India.
Earlier this year, Abu Dhabi Investment Authority (ADIA) acquired a 20 percent stake in IIFL Home Finance to develop more projects in the affordable housing space.
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