SWAMIH fund enables completion of 50,000 stalled homes
The SWAMIH Investment Fund I has emerged as a transformative initiative in India’s real estate sector, delivering over 50,000 homes as of January 24, 2025. The fund was launched in 2019 with an ambitious target to deliver 20,000 homes annually.
Origins and Purpose
Announced by Finance Minister Nirmala Sitharaman on November 6, 2019, the SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund was conceived to provide priority debt financing for the completion of stalled residential projects. The Union Cabinet approved this initiative, with SBI Ventures appointed as the Investment Manager. The Fund specifically targets brownfield, RERA-registered projects in the affordable and mid-income housing categories that are net worth positive but require last-mile funding to ensure completion.
Addressing a Critical Need
India’s real estate sector has faced significant turbulence in recent years, marked by slow sales, growing unsold inventory, and shifting consumer preferences toward completed projects. These challenges were compounded by a liquidity crunch, as lenders reduced exposure to real estate. Consequently, numerous projects were stalled, leaving homebuyers in limbo. Many faced mounting financial burdens from rent and home loan interest payments, while developers struggled to secure funding. A 2019 Propequity study commissioned by SBI Ventures revealed that 1,500 projects comprising 4.58 lakh housing units required an estimated INR 55,000 crore to resume and complete construction.
Structure and Funding
The SWAMIH Fund was designed with an initial target corpus of INR 12,500 crore, complemented by a green shoe option of an additional INR 12,500 crore. By December 6, 2022, the Fund achieved its final close with a capital commitment of INR 15,530 crore. Sponsored by the Department of Economic Affairs, Ministry of Finance, the Fund is managed by a team of over 30 seasoned investment professionals, collectively bringing an average of 15 years of industry experience.
Success Stories
One of the Fund’s notable success stories is its intervention in six stalled projects of the Amrapali Group, which collectively cover a saleable area of 92.71 lakh square feet. In August 2021, SWAMIH committed INR 650 crore to these projects, targeting the delivery of 6,950 housing units. To date, 3,350 units have been handed over, with an additional 1,400 units expected by FY 2023. This funding not only reignited hope among affected homebuyers but also inspired confidence in other financial institutions, leading to a consortium that provided INR 1,500 crore for the remaining projects.
Another success story is the Rivali Park Wintergreens project in Borivali (East), Mumbai, developed by CCI Projects Pvt Ltd. This residential development features a total saleable area of 10.8 lakh square feet and 708 units. Despite being launched in 2010, the project faced delays due to regulatory changes, sand shortages, and the NBFC crisis, which led existing lenders to halt funding. By February 2020, SWAMIH Fund stepped in with a commitment of INR 180 crore, of which INR 123.3 crore has been invested so far. By August 2021, CCI Projects Pvt Ltd had repaid INR 118.3 crore along with 12% XIRR, successfully revitalizing the project and restoring buyer confidence.
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