economy

KKR’s NBFC arm invests RS 725 crore in Embassy Group’s commercial project

BENGALURU

: Global investment firm

KKR

’s real estate-focused non-bank finance company,

KKR India Asset Finance

Limited (“KIAFL”) has invested Rs 725 crore (US$102 million) in premium office development project in Bangalore, to be developed by

Embassy Group

.

“KIAFL looks to provide tailored, flexible financing solutions to high-quality projects in strong micro markets. With this in mind, mid-market residential and commercial projects in Bangalore are among the most interesting themes for us,” said Sanjay Nayar, member & head of KKR India.

KIAFL has been active since 2015 and has invested more than US$1.5 billion in India’s realty sector, as of February 2019. It maintains a core focus on high-quality opportunities in cities including Bangalore, Hyderabad, Mumbai and Pune.

Embassy group has delivered 153 million square feet of office, residential, retail, hospitality and industrial warehouses.

“Embassy is focused on meeting the high demand for commercial office space in the country. Attracting the support of a global investor of KKR’s caliber further advances Embassy’s efforts to develop high-quality properties for corporate occupiers. We look forward to a long term association with the KKR team,” Jitu Virwani, MD, Embassy Group said.

Separately, The Blackstone Group, the world’s largest real estate private equity firm, is planning to list its own marquee income-producing commercial assets in India and office properties jointly owned with the Embassy Group under its Real Estate Investment Trust (REIT)

The REIT, registered in 2017 as Embassy Office Parks, is sponsored by Blackstone and Bengaluru-based realty developer Embassy Property Developments.

The proposed over Rs 5,000-crore REIT, will be India’s maiden REIT issue. Embassy Office Parks is listing 33 million sq ft office real estate portfolio under the REIT. Of this, an area of 24 million sq. ft. has been completed and has 95% occupancy. The remainder is under construction.


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