The non-banking finance company (NBFC) of private equity powerhouse KKR has provided INR1.45 billion (€19.3 million; $21.5 million) to Mantri Developers' luxury residential project in India.
The four/five- year senior secured loan will be used to finance the development project of a 1.3 million square feet of premium residential apartments in Bangalore, sources close to the deal told PDI.
“We are focused on providing long-term solutions to India's real sector by financing the projects of experienced partners like Mantri Developers. This investment marks the start of a relationship with Sushil Mantri and his team, and underscores our confidence in Bangalore's real estate sector and economic prospects,” said Sanjay Nayar, chief executive of KKR India.
KKR has been an active debt investor in the real estate financing sector in India. Earlier this year, it lent INR1.5 billion to Sunteck's flagship luxury residential developments in Mumbai, Signia Isles and Signia Pearl.
KKR's real estate-focused NBFC was established in January 2015. The Singaporean sovereign wealth fund GIC is the lead investor in the vehicle. It aims to provide financing solutions to property developers in India.
Mantri Developers was established in 1999 and has built over 28 projects in the real estate sector. It has a focus on the residential sector, retail, hospitality, IT Parks and educational institutions in Bangalore, Chennai, Hyderabad and Pune.