Realty developer SARE Homes Pvt Ltd has received Rs 200 crore (about $30.16 million) from alternative investment giant Kohlberg Kravis Roberts & Co Ltd (KKR) in debt, it is learnt.
The PE giant has invested the money through its real estate-focused non-banking financial company (NBFC) in India which also has investment from GIC.
Most of the capital raised would be used for upcoming projects in the micro markets they are present in, sources privy to the development told VCCircle.
The Gurgaon-based SARE Homes is promoted by London-based global asset and real estate management firm Duet group. This would be the first external investment in the realty developer from a major player.
SARE Homes, which has been present in India since 2006, is developing seven townships across the country covering over 30 million sq ft of area. Apart from Gurgaon, SARE Homes is also present in Chennai, Ghaziabad, Amritsar, Indore and Navi Mumbai.
On the other side, KKR had floated the NBFC in January this year with Singapore’s sovereign wealth fund GIC as the lead investor. The platform provides credit solutions for property developers across residential and commercial segments. It will engage in senior secured lending for funding developers.
Last month, the NBFC raised an undisclosed amount from the Townsend Group, a global investment management solutions firm.
This is the second NBFC of KKR in India. Through its first, it expanded its capabilities to provide solutions across the capital structure. Since 2009, KKR has extended more than $2 billion of structured financing to 21 business groups in India through its credit and capital markets business.
It marked its entry in real estate last year with investments in Wadhwa and Bhartiya Group. While it has been active in India since 2006, it has ramped up its activity in the realty space in the last one year. Since launching a dedicated real estate platform in 2011, KKR has committed over $1.8 billion of equity to 29 real estate transactions in the US, Europe and Asia.