IFC picks up 44% stake in Birla Estates’ two residential projects, invests Rs 420 cr

The International Finance Corporation (IFC), a member of the World Bank Group, has made an investment worth Rs 420 crore in two major residential real estate projects being developed by Birla Estates Private Ltd (BEPL), a wholly owned subsidiary of Aditya Birla Real Estate Ltd.

The investment will be utilised to support the development of around 9.5 million sq ft of saleable area across two locations--Thane and Pune--through separate Special Purpose Vehicles (SPVs) jointly owned by IFC and Birla Estates.

Under the structure, IFC will hold a 44% economic interest in these SPVs, while Birla Estates will retain a 56% stake. The Thane project, comprising around 6.43 million sq ft, will receive around Rs 272 crore, while the project in Pune’s Manjri, with around 3.13 million sq ft, will receive Rs 148 crore.

“Housing is a powerful driver of jobs, resilience, economic growth--and a key priority for IFC,” said Imad N. Fakhoury, Regional Director for South Asia at 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.”

The investment aligns with IFC’s focus on supporting inclusive, climate-resilient infrastructure and advancing India’s net-zero goals. The projects are expected to generate employment, deepen private sector participation in housing, and contribute to sustainable urban development.

“This investment validates our development philosophy and strengthens our ability to scale responsibly. With IFC’s global expertise in sustainable investments and our market insights, we aim to set new benchmarks in Indian real estate,” said K. T. Jithendran, MD & CEO of Birla Estates.

This investment comes as Birla Estates ramps up expansion, having recently launched five projects across NCR, Bengaluru, and Pune in the final quarter of 2024-25, marking its strongest sales quarter so far.

For IFC, the transaction reaffirms its long-standing commitment to India’s real estate sector and its role in financing sustainable housing solutions.