KKR & Co Ltd has agreed to invest Rs 150 crore ($22.4 million) in two projects of Mumbai-based developer Sunteck Realty Ltd, as the alternative investment giant ramps up its bets on the Indian real estate sector.
The Indian company said in a statement it has signed a definitive agreement for its Signia Isles and Singnia Pearl luxury residential projects located in Mumbai’s Bandra Kurla Complex central business district. The projects have evinced interest from top corporate executives and Bollywood celebrities, it claimed.
“Sunteck has a strong reputation and execution track record in Mumbai, where we see compelling residential and commercial real estate investment opportunities,†said Sanjay Nayar, CEO, KKR India. He added that KKR may explore more opportunities with Sunteck in the future.
Kamal Khetan, chairman and managing director at Sunteck Realty, said the company can leverage its brand and execution strength, and that of its partners, to explore acquisition opportunities.
KKR has expanded its real estate activity in India through a sector-focused non-banking financial company it set up last year along with Singapore's sovereign wealth fund GIC as the lead investor. The NBFC seeks to provide credit to property developers across residential and commercial segments.
Late last year, the NBFC raised an undisclosed amount from the Townsend Group, a global investment management solutions firm. It recently invested Rs 200 crore across a bunch of projects of North India-based developer SARE Homes. Its other investments include projects of Wadhwa and Bhartiya Group.
Global investors have renewed their interest in the Indian realty market to tap into the long-term potential of the sector. Led by global pension and sovereign funds, investment in the real estate sector touched a seven-year high of $2.8 billion in 2015, according to VCCEdge, the data-research platform of VCCircle.