Ashiana II Project The proposed project involves IFC investing INR 2,250 million (equivalent of approximately US$27.4 million) in mid-income and senior living residential projects developed by Ashiana Housing Limited (Ashiana or the Company) in India. The Project has an Anticipated Impact Measurement and Monitoring (AIMM) rating of Good, based on an AIMM score of 53. On an unadjusted basis (i.e., without the likelihood factor), the full potential AIMM score could reach 70. The most significant, expected Project-level outcomes are increased access to middle-income housing for customers, especially for the senior citizens. Beyond the Project, IFC anticipates that the Project will promote Competitiveness in the market through demonstration and replication, by showcasing the commercial viability of the senior housing segment and creating competitive pressure.
Assessment of Project Outcomes - The Project outcomes rating is Very Strong with Medium likelihood of achievement. The likelihood assessment is based on (i) the Companys track record as a reliable real estate developer with experience developing large-scale senior living and middle-income housing projects in India; and (ii) the growth in demand for senior living housing expected to be strongly supported by demographic trends in India. The likelihood is tempered by risks related to demand as the financing plan of the project relies predominantly on funds from customer pre-sales. The housing market for senior citizens is nascent and not well understood. Moreover, the uncertainty in economic outlook, high interest rates, inflationary concerns may affect the business environment and demand for housing. 
Stakeholders  Increased access to quality senior living housing: In case of India, the number of senior people aged above 60 is projected to increase from the current 139 million to 320 million by 2050, comprising 20% of the total population (vs current 6%). Yet, the senior living housing market in India is nascent and the supply faces challenges due to low comprehension of development and financial viability of senior living projects, the higher cost than normal housing units due to additional amenities such as medical care, and lack of incentives in the sector. The Project is expected to add ~2,000 additional units of senior living housing in India across outside NCR, Pune, and Chennai. The senior living projects will target those who are at least 55 years old and will benefit from a community to enjoy company and participate in activities. 
Stakeholders  Increased access to quality middle-income housing: Supply has been bottlenecked due to bankruptcies of several large and small housing developers after the tightened standard control initiated by the regulator in 2016, which has led to construction stalling in the recent years. In this context, Project will add ~3,500 additional units of middle-income housing units. Given the average household size in the target cities ranging from 4.3 to 5.3, the project is expected to reach nearly ~15,000 people.
Assessment of Contribution to Market Creation - The contribution to market creation rating is Moderate with a Medium likelihood of achievement. The likelihood assessment is based on (i) AHLs reputation built as the market leading brand in senior living housing and by introducing the concept of kids centric middle-income housing (ii) the dynamism in the senior housing market with increased demand and growing acknowledgement of the regulator to support growth in this segment, which will help attract private capital in this sector. The likelihood is tempered by uncertainties in the economic outlook, exacerbated by the war in Ukraine and lingering global consequences of the pandemic, potentially hampering the growth of the construction sector in India. 
Competitiveness: The Project is expected to promote Competitiveness in the mid-income housing segment, especially in the senior housing class.