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Standard Chartered PE to create INR30bn partnership

The private equity investment division of the bank is reportedly partnering with an Indian developer for commercial real estate investments in the country.  

Standard Chartered Private Equity is reportedly in the final stages of creating an INR30 billion (€411.7 million; $458.6 million) Indian real estate investment platform with Tata Realty & Infrastructure, the Mumbai-based real estate and infrastructure development arm of the Indian conglomerate Tata Group.

According to a report in The Economic Times released this morning, the private equity investment business of the London-based lender will be investing INR20 billion, while Tata Realty will invest the remaining INR10 billion. The platform would make investments in commercial real estate assets across the country.

The total equity investment in the platform from both the partners is expected to be around $250 million, with the remainder being debt investments, according to the report.
The deal has not officially closed yet.

This is Standard Chartered Private Equity’s second real estate tie-up in India in a month. In late July, an INR12.5 billion partnership was announced between the firm, the Asian Development Bank, the International Finance Corporation, and the Shapoorji Pallonji Group, a Mumbai-based developer. The partnership will invest in affordable housing projects across India.

Standard Chartered Bank was also involved in Kohlberg Kravis Roberts’ (KKR) first property deal in India in June last year when the two firms joined forces to provide an INR7.5 billion loan to the Wadhwa Group, another Mumbai-based developer, for a residential development project. Standard Chartered provided INR4 billion of the loan amount while KKR contributed the remaining INR3.5 billion from its INR20 billion India Alternative Credit Opportunities Fund I.

Standard Chartered Private Equity declined to comment on the Tata Realty partnership.