KKR, GIC partner for real estate structured lending platform

KKR participated in 3 real estate transactions in 2014

KKR, a global investment firm, today announced it has established a non-banking financial company that will provide structured credit solutions to the real estate sector in India, with an investment from Singapore sovereign wealth fund GIC.

“We are excited to assist a sector that is still under-built. While many lenders provide debt to this sector, there is a need for solution-oriented, non-dilutive capital for property developers. We intend to fill that gap and contribute to the continued development of India’s residential and commercial real estate sectors,” said Ralph Rosenberg, Global Head of KKR Real Estate.

This is KKR’s second NBFC in India. Through its first, KKR expanded its capabilities to provide solutions across the capital structure. Since 2009, KKR has extended more than $2 billion of structured financing to 21 business groups in India through its credit and capital markets business.

“This sector-focused NBFC further enables KKR to provide tailored financing solutions to companies,” said Sanjay Nayar, CEO of KKR India. 

During 2014, KKR initiated the real estate business in India by structuring and participating in three transactions with an aggregate amount of approximately $190 million.

In private equity, KKR has been active in India since 2006, with total equity investments exceeding $1.5 billion.

Since launching a dedicated real estate platform in 2011, KKR has committed over $1.8 billion of equity to 29 real estate transactions in the US, Europe and Asia.