Brick Eagle Capital Advisory has received Rs. 50 crore anchor commitment each from Bennett Property Holdings and Axis Bank for its Alternative Investment Fund out of its targeted corpus of Rs. 500 crore. The Brick Eagle India Affordable Housing Fund is a Category II AIF registered with SEBI. It is aimed at catalyzing 50,000 homes for low income families, while targeting healthy returns for its investors. Affordable Housing as a sector has been generating increased interest amongst customers. Prior to this fund, Brick Eagle Capital Advisory has raised Rs. 400 crore for project finance, which has been deployed across 9 cities and 8 developers. Affordable housing sector has received a major boost on account of recent policy initiatives from the government. Policy push includes ‘Infrastructure’ status for the sector, tax holidays for Developers and subsidies of up to Rs. 2.7 lakhs for first time homebuyers.
Axis Bank’s ‘Asha Home Loan’ was the first affordable home loan product by a bank in the country. Within 2-3 years of its launch, the Bank has already helped 35,000 families own their dream home. Axis Bank is not only pleased to invest in Brick Eagle but also hopeful that this partnership will facilitate more people to realize their dream of buying a home. The Bank looks upon this as an opportunity to aid the nation in sustainable development in a profitable manner.
In order to accomplish ‘Housing for All’, India needs to build $200 billion work of affordable homes each year. Even according to conservative estimates, this requires $30-40 billion of early stage project finance annually. On the other hand, most of these projects are from local developers, requiring Rs. 10-20 crores early stage funding per project. Similar to SME lending, specialist approach is required for this. India is in need of dedicated financial institutions which can raise large corpus and deploy across thousands of affordable housing projects each year. One of the few institutions that address this need is Brick Eagle.
According to experts, the segment of Affordable Housing will take some time to attain a stage of maturity and competitiveness with just a few organized service providers. They also believe that Brick Eagle has adopted the right approach in its attempt to make a mark in this emerging vertical.