Birla Estates, the real estate arm of Aditya Birla Group, on Monday said it has secured an investment of Rs 420 crore ($49.1 million) from World Bank Group member International Finance Corporation (IFC).
The funding will support two large-scale residential projects in Thane and Pune, furthering the company’s goal of building sustainable, premium housing across India.
The capital will be invested through two Special Purpose Vehicles (SPVs) controlled by Birla Estates. IFC will acquire a 44% economic interest in the SPVs, while Birla Estates will retain a 56% stake.
The Thane project, with a saleable area of 6.43 million sq ft, will receive approximately Rs 272 crore, while the Pune project in Manjri, with 3.13 million sq ft of saleable area, will get Rs 148 crore, the firm said in a statement.
The investment comes at a time when Birla Estates is expanding its footprint across key markets. In the last quarter of FY25, the company launched 5 projects across its key markets of NCR, Bengaluru and forayed into the Pune market.
Birla Estates is developing land parcels both through outright purchases as well as asset-light joint ventures, apart from developing its land parcels.
India has the largest volume of investments globally for IFC, with a portfolio of over $8 billion, of which approximately 36% is in equity investments, according to a press statement issued by IFC in April 2024.
“Housing is a powerful driver of jobs, resilience, and economic growth, and a key priority for IFC. Our partnership with Birla Estates will bridge the gap in India’s housing sector by expanding availability of and access to sustainable, high-quality housing for the country’s growing population, with a focus on first-time homeowners,” Imad N. Fakhoury, Regional Director for South Asia, IFC, said.
