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LICHF plans to launch real estate venture capital fund

LICHF plans to launch real estate venture capital fund
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First Published: Sat, Nov 05 2011. 01 20 AM IST

LIC Building, Life Insurance Corporation of India (LIC) in Delhi. Photo by Rajkumar
LIC Building, Life Insurance Corporation of India (LIC) in Delhi. Photo by Rajkumar
Updated: Sat, Nov 05 2011. 01 20 AM IST
New Delhi: LIC Housing Finance Ltd (LICHF), a subsidiary of Life Insurance Corporation of India (LIC), plans to launch a Rs 500-750 crore real estate venture capital fund shortly.
LIC Building, Life Insurance Corporation of India (LIC) in Delhi. Photo by Rajkumar
“It should happen in two-three months. We have got all the necessary approvals and permission from the government,” chief executive officer V.K. Sharma said on Friday. “For this, the company will seek funds from domestic institutions, high net-worth individuals and banks. The venture capital’s focus will be to invest primarily in urban real estate.”
The fund will be raised through its subsidiary, LIC Housing Finance Asset Management Co.
LICHF plans to disburse Rs 25,000 crore in the current fiscal, Sharma said.
“As there is more demand from real end-users, 93% of our lending is to retail, home loan borrowers,” he said. “Rest of the lending is to commercial real estate for construction. Compared to the previous fiscal, the share of our lending to commercial real estate has come down from 12% to 7% this year.”
LICHF plans to launch affordable housing projects for senior citizens in all the state capitals.
“We have already begun constructing houses for senior citizens in Bhubanehwar. Next year, we will start a similar project in Bangalore,” Sharma said.
LICHF last year said it would build affordable housing in the price range of Rs 6-8 lakh, picking one state every year. The company has already acquired land in Bangalore and Jaipur.
devesh@livemint.com
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First Published: Sat, Nov 05 2011. 01 20 AM IST