KKR’s NBFC arm invests $100m in Embassy Group’s Bengaluru project

Global investment firm KKR’s non-banking finance unit, KKR India Asset Finance Ltd (KIAFL), has invested Rs 725 crore in real estate developer Embassy Group’s upcoming commercial project in Bengaluru, per an announcement.

“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 and head of KKR India.

KIAFL has been active since 2015 and has invested more than $1.5 billion in India’s realty sector. It maintains a core focus on opportunities in cities including Bangalore, Hyderabad, Mumbai and Pune. Some of its past investments include Pune-based developer Kolte Patil and a Ghaziabad project of SARE Homes.

Embassy Group, promoted by Jitu Virwani in 1993, has a strong presence in the commercial office space sector across key Indian markets. The Bengaluru-based group has delivered 53 million square feet of office, residential, retail, hospitality and industrial warehouses.

Embassy, along with private equity major Blackstone, plans to launch India’s first Real Estate Investment Trust (REIT) to raise more than Rs 5,000 crore as part of a plan to monetise rent-yielding commercial assets.

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