KKR makes twin real estate deals in India

The arranging arm of the US private equity investor has made two real estate investments in India totalling almost $200 million.

KKR Capital Markets has invested in two separate residential developments in India totalling $193 million, PDI has learnt.

It has co-underwritten a $125 million debt facility to the Wadhwa Group, a luxury real estate developer in India, for a brownfield residential project in Mumbai. It has also extended credit of $68 million to the Bhartiya Group, a real estate developer, to invest in another brownfield residential development in Bangalore.

As first reported by The Economic Times, KKR has made its entry into India’s real estate sector by finalising the two transactions. The Wadhwa Group will use the structured loan to repay other lenders of the project in west central Mumbai.

It has also extended a loan to the Bhartiya Group, which is to invest a total of Rs 10,000 crore ($1.6 billion; €1.3 billion) in a township project, which includes houses, an IT zone and a shopping district. The area spans 125 acres of land in north Bangalore and will be developed over seven to ten years.

KKR declined to comment. The Wadhwa Group and Bhartiya Group were not available to comment at time of going to press.

The real estate investment by KKR follows an agreement to provide $164.2 million in a structured debt financing to GMR Infrastructure, an Indian infrastructure firm last month, and is further evidence of how the firm is diversifying away from its leveraged buyout heritage.