US private equity firm Warburg Pincus has entered into a joint venture with Unique Affordable Homes, an affordable housing development company owned by the Mannat Group, to build low-cost mass housing projects in North and West India.
Warburg Pincus will be providing an initial equity commitment of up to $75 million (€48 million), according to the firm.
Since its establishment in 2003, the group has completed nine real estate projects comprising four residential and five commercial projects mostly in the state of Rajasthan. The group has a large land bank in Jaipur and the surrounding areas, and has plans to launch projects in the residential, corporate/commercial and township sectors.
Unique Builders is now venturing into affordable homes with modern amenities, on a large scale. The first of such projects under this joint venture is MyHaveli, a 3,510-condo multi-family high-rise community project in Rajasthan, which was launched in November 2007. The venture intends to invest approximately $150 million in this seed project.
In addition to this first project, the Company has similar projects slated in Jaipur, as well as in a number of other cities across Rajasthan.
Warburg Pincus has invested $12 billion outside the United States, the bulk of that in India and China according to Warburg Pincus managing director Dalip Pathak.
Though it has been investing in real estate for two decades, it only closed its first real estate opportunity fund in 2006 when it garnered $1.2 billion (€940 million) of commitments.