Affordable housing, logistics to get a boost from SWFs
20 Feb 2020
2 Min Read
Editorial Team
The measures announced recently in the Union Budget granting 100 per cent tax exemption on interest, dividend and capital gains income to Sovereign Wealth Funds (SWFs) investing in infrastructure, will further help boost investments in affordable housing and logistics, says JLL Research. India seems to have gained a major impetus following some positive policy backing and the ecosystem in general thus helping boost the image of the country as a favorite with SWFs.
Sovereign Wealth Funds are state-owned investment funds commonly established with revenues generated from trade surpluses, central bank reserves, currency operations, privatisations and transfer payments. Between 2008-2018, global Assets Under Management (AUM) of SWFs grew at a CAGR of 10 per cent with Asia, garnering the highest share (42 per cent).聽
鈥淪overeign wealth funds have been playing a pivotal role in investments globally with estimated AUM of 8.1 trillion as of 2019. Investments by SWFs in India improved sharply as a result of various policy measures introduced to attract foreign investments. The Union Budget for 2020 has further incentivised SWFs to invest in infrastructure including affordable housing and warehousing by providing tax exemptions. The rise in potential returns is expected to drive more SWF investments in India. SWFs would be more inclined to use the direct investment route as compared to investment platforms,鈥� said Ramesh Nair, CEO and Country Head, JLL India.
India emerging as the favourite destination for SWFs聽
Investments by SWFs improved sharply as various policy measures were introduced to attract foreign investments. In India, SWFs hold US$ 29 billion of Assets Under Custody (AUC) as of December 2019. Of these, real estate and warehousing account for 22 per cent of the AUC, amounting to US$ 6.6 billion.聽
鈥淪WF Investments quadrupled to US$ 5.3 billion during 2014-19 from US$ 1.3 billion recorded between 2005 and 2013, due to various reforms introduced in the real estate sector. Going forward, we expect more traction from this type of patient capital,鈥� said Dr Samantak Das, Chief Economist and Executive Director, JLL India.
The Union Budget for 2020 further incentivises SWFs to invest in infrastructure by providing them a 100 per cent tax exemption on interest, dividend and capital gains income in respect of investment made in infrastructure and other notified sectors before March 31, 2024, with a minimum lock-in period of three years.聽
The resultant increase in potential returns is expected to boost investments by SWFs in affordable housing and logistics and warehousing which have been accorded infrastructure status.聽
The measures announced recently in the Union Budget granting 100 per cent tax exemption on interest, dividend and capital gains income to Sovereign Wealth Funds (SWFs) investing in infrastructure, will further help boost investments in affordable housing and logistics, says JLL Research. India seems to have gained a major impetus following some positive policy backing and the ecosystem in general thus helping boost the image of the country as a favorite with SWFs.Sovereign Wealth Funds are state-owned investment funds commonly established with revenues generated from trade surpluses, central bank reserves, currency operations, privatisations and transfer payments. Between 2008-2018, global Assets Under Management (AUM) of SWFs grew at a CAGR of 10 per cent with Asia, garnering the highest share (42 per cent).聽鈥淪overeign wealth funds have been playing a pivotal role in investments globally with estimated AUM of 8.1 trillion as of 2019. Investments by SWFs in India improved sharply as a result of various policy measures introduced to attract foreign investments. The Union Budget for 2020 has further incentivised SWFs to invest in infrastructure including affordable housing and warehousing by providing tax exemptions. The rise in potential returns is expected to drive more SWF investments in India. SWFs would be more inclined to use the direct investment route as compared to investment platforms,鈥� said Ramesh Nair, CEO and Country Head, JLL India.India emerging as the favourite destination for SWFs聽Investments by SWFs improved sharply as various policy measures were introduced to attract foreign investments. In India, SWFs hold US$ 29 billion of Assets Under Custody (AUC) as of December 2019. Of these, real estate and warehousing account for 22 per cent of the AUC, amounting to US$ 6.6 billion.聽鈥淪WF Investments quadrupled to US$ 5.3 billion during 2014-19 from US$ 1.3 billion recorded between 2005 and 2013, due to various reforms introduced in the real estate sector. Going forward, we expect more traction from this type of patient capital,鈥� said Dr Samantak Das, Chief Economist and Executive Director, JLL India.The Union Budget for 2020 further incentivises SWFs to invest in infrastructure by providing them a 100 per cent tax exemption on interest, dividend and capital gains income in respect of investment made in infrastructure and other notified sectors before March 31, 2024, with a minimum lock-in period of three years.聽The resultant increase in potential returns is expected to boost investments by SWFs in affordable housing and logistics and warehousing which have been accorded infrastructure status.聽
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
