American multinational private equity firm, Kohlberg Kravis Roberts & Co Ltd (KKR) has agreed to invest Rs 200 crore ($31 million) in real estate firm Signature Global, India for the development of affordable housing projects.
KKR is planning to invest two housing projects of Signature Global situated in Gurgaon. The projects would be developed under the Haryana government's affordable housing policy.
“We have raised Rs 200 crore from KKR as structured debt at entity level. The fund would be utilised on our existing and future low-cost housing projects .We are developing around 7,400 affordable homes. We have already allotted 5,005 units and 2,400 would be allotted soon. We wish to build up over 100,000 reasonable homes by 2022. The current launch of over 1,900 units is a step in that direction and would come up at a total cost of Rs 500 crore,” said Pradeep Aggarwal, co-founder and chairman, Signature Global Group.
According to Pradeep Aggarwal, at present the firm is in process of developing seven projects, of which three would be delivered by the end of 2018. Further to this he also said that the company plans to launch 15,000- 18,000 units during this fiscal and announced launch of two projects in Gurgaon comprising 1,900 units.
For the transaction, KPMG India Pvt. Ltd and Yes Securities Ltd acted as financial advisers. Signature Global will also be expanding to Karnal, Ghaziabad and cities in UP and Maharashtra. The firm has raised Rs 150 crore from ICICI Prudential in May last year.
After demonetisation, the Prime Minister, Narendra Modi had announced interest subsidy of up to 4 per cent on loans so as to increase the demand for rural and urban housing.
This is not the first exposure of KKR in Indian real estate market. Earlier in 2015, KKR joined hands with Singapore’s sovereign wealth fund to set up a non-banking financial company (NBFC) that would lend funds to property developers in India.
May 10, 2017