KKR and StanChart will finance ‘’The Address’’- luxury homes project in Mumbai
The market for the luxury homes seems to be picking up as Mumbai-based developer Wadhwa Group has launched its luxury homes project in suburban Ghatkopar where apartments cost Rs.1.7-10 crore. They have named this project ‘’ The Address’’ and are busy raising Rs 750 crore for the project.
Kohlberg Kravis Roberts and Co. LP (KKR) will invest Rs.350 crore, while Standard Chartered Bank will lend Rs 400 crore. Sources close to the developments in this deal mentioned that this money will not only be used for the project, but also will be used to repay some old loans from Indiabulls Financial Services Ltd. This refinancing is beneficial for the company and hence KKR wants to repay the remaining debt of Rs 290 Crore out of the Rs. 330 Crore which was borrowed from Indiabulls earlier.
The real estate market watchers and analysts are very excited with this new improvement as they feel that after the swearing in of the Modi Government, there is a positive sentiment in the real estate sector. This will be probably the first investment by KKR India Asset Finance, a real estate-focused non-banking finance company (NBFC). KKR usually makes debt transactions as well as combined debt-equity deals with property developers in India.
Last year, KKR had hired Ashish Khandelia as a director for its real estate investment platform from Morgan Stanley Real Estate and this year hired Saurabh Gupta who was previously with SUN-AREA Property Partners. Khandelia’s team looks for alternative sources of funding as bank finances have reduced over the years. The team hunts for opportunities for long-term real estate investments in both early and advanced stage projects.
Source- Mint
KKr, Kohlberg Kravis Roberts (KKR & Co), Mumbai-based developer Wadhwa Group, Non-banking finance company, Stanchart
