PE, VC firms eye Mahindra's affordable home project.

Mahindra Lifespaces, realty arm of the $16.9-billion Mahindra Group, has said venture capital (VC) and private equity (PE) funds have shown interest in its affordable housing projects.

The realty firm plans to build 20,000 affordable homes under Happinest, over the next five years. Going by the current market rates, this entails an investment of around Rs. 1,500 crore.

According to Sriram S Mahadevan, business head, Happinest, the parent company will fund part of the investment. Besides, several VCs and PEs have also shown interest in the project, Mahadevan told Business Standard. The project is targeted at the emerging Indian middle class, he said.

'We have not decided how much we have to raise. Many investors have approached us but we haven't responded to them yet,' Mahadevan added.


BS