Pune: Vastubodh Projects, a Pune-based firm, has announced that it has successfully secured a significant fund of ₹40 crore from its private equity partners for the development of two affordable housing initiatives. The Mumbai-based private equity firm, Avenue Partners Real Estate Funds, is set to inject this capital into Vastubodh’s affordable housing scheme called AnandGram, which encompasses an expansive area of 25 acres. The remainder of the funding will be allocated to another housing project that is yet to be disclosed.
Out of the total investment, approximately ₹20 crore will be directed toward the AnandGram project, with Avenue Partners acquiring an impressive 80% equity stake in this development. Despite this substantial shareholding, Vastubodh Projects is optimistic about repurchasing those stakes from the private equity firm within the forthcoming three years.
This marks the second investment from a private equity entity into an affordable housing venture; previously, in 2011, Carlyle committed an investment of $26 million in Value and Budget Housing Corporation.
Vastubodh Projects, known for its focus on affordable housing solutions, currently has projects located in Pune, Kolhapur, and Baramati, and is even contemplating an entry into the Mumbai real estate market in the near future. The company has also partnered in a joint venture to acquire 1.1 million square feet of land in Boisar, where it has invested around ₹10 crore.
Under its brand names, Vastubodh Projects offers two distinct housing lines: AnandGram, catering to lower-income groups, and UrbanGram, which targets middle-income families. AnandGram will present homes priced between ₹500,000 and ₹1,500,000, while UrbanGram will offer units ranging from ₹1.5 million to ₹3 million.
Avenue Ventures Partners, established in 2012, has raised ₹250 crore specifically to invest in residential projects concentrated in Pune, Bangalore, and Chennai.