KKR cracks Rs.1,000 cr realty plan

In a recent development in the country’s real estate sector, Marquee American investor KKR & Co is striking its first equity investment deal in Indian real estate sector and is likely to invest $150 million, or about Rs.1,000 crore in the IPO-bound Lodha Developers. Up till now, KKR through its NBFC has extended more than Rs.4,000 crore in financing to developers— mostly in Mumbai, Bangalore and the National Capital Region—including a Rs.500 crore loan to the Mumbai-based Lodha in the past and is again investing in the country‘s largest residential builder by sales, sources said. KKR is investing at a time when global risk investors have shied away, leaving the volatile sector dependent on structured financing deals. Sources said adding that KKR will invest in a part of the Lodha business, in a special purpose vehicle which will eventually migrate to an entity going for the public offering late this year or early next calendar.

Published: 01 July 2017