KKR pumps Rs 315 crore in Runwal's Mumbai residential project
Editor | January 19, 2017 @ 12:01 PM
Mumbai
In the first institutional investment in Indian real estate this year, US private equity firm KKR & Co. has put in over Rs 315 crore in a premium residential project being developed by the Runwal Group in a Mumbai suburb.
The Runwal Bliss project being built in Kanjurmarg is spread over 36 acres, which the developer acquired from Crompton Greaves in early 2015 for over Rs 1,200 crore.
The tenure of KKR’s investment is seven years, while the project with a total saleable area of 6 million square feet will be completed in phases within eight years. The funding was made through KKR India Financial Services and KKR India Asset Finance, said two persons familiar with the development While KKR declined to comment on the investment, an email query to Runwal Group remained unanswered at the time of going to press.
One of Mumbai’s central suburbs, Kanjurmarg is emerging as the latest hub for residential properties with better connectivity and infrastructure development and is being seen as an alternative to Powai.
KKR India Asset Finance was set up over two years ago to focus on realty projects in top cities and counts Singapore’s sovereign wealth fund GIC among its partners. KKR India Fin Services focuses on sector-agnostic corporate lending.
KKR India Asset Finance, which offers structured credit to real estate developers, raised $60 million, or about Rs 400 crore, in late 2015 from the Townsend Group, a US based firm focused on real estate. The funds were raised through a fresh issue of shares, expanding its equity base to $220 million, or about Rs 1,500 crore.
Kailash Babar, Economic Times, Mumbai