Omkar Realtors in talks with KKR arm to raise Rs400 crore.

Q: Mumbai-based real estate developer Omkar Realtors and Developers Pvt. Ltd. is in talks to raise Rs.400 crore from KKR India Asset Finance Pvt. Ltd.

Javed,

7th January 2015

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Replies (19)

And this deals will also provide construction finance to real estate companies for commercial projects, which typically is a challenge for the industry.

Nishant Bhat, Mumbai

17th January 2015

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Do you know Nishant? DIC is the largest shareholder of listed firm DIC Asset AG , which focuses on managing existing assets rather than developing new office space and retail buildings.

KKR has appointed DIC Asset's Chief Executive Ulrich Hoeller to head GEG and is planning to invest its own capital as well as third-party money.

Vinay Dixit, Mumbai

16th January 2015

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Yes Vinay,
And as per KKR, with this new platform, they will be able to accelerate their approach to investments in Germany across the risk spectrum.
Germany's real estate sector has grown in recent years and investors are betting on a further rise in property prices in Europe's largest economy, which have lagged many other euro zone countries for years.

Nishant Bhat, Mumbai

16th January 2015

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Hi all,
Do you know that US buyout group KKR said it is entering the German property market, setting up a business that a person familiar with the transaction said planned to invest 5 billion euros ($5.9 bln) over the next 5 years.

Vinay Dixit, Mumbai

16th January 2015

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German Estate Group AG (GEG), which will focus on commercial real estate, will take over the operating business and 40 staff from real estate developer Deutsche Immobilien Chancen (DIC), KKR and DIC said in a joint statement on 14.01.2015.

Vinay Dixit, Mumbai

16th January 2015

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The GIC-KKR venture be a sign of confidence in the Indian real estate prospect. The move will redue liquidity crisis that real estate companies find themselves in and improve companies' access to finance.

Nishant Bhat, Mumbai

16th January 2015

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Do you know Neeraj even the company GIC is in September 2014, had tied up with Bangalore's Brigade Group for a Rs 1500-crore joint venture for residential development in south India, and prior to that in November 2013, it had launched Ascendas India Growth Programme at S$600 million along with business space solutions provider Ascendas, to invest in the real estate sector in India.

Rajiv,

15th January 2015

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Even Singapore sovereign wealth fund GIC has been betting big on India. Last month, GIC announced its plans to acquire a majority stake in Nirlon, in a deal that could well be over Rs 1250 crore. This was the second deal signed by the fund in Indian real estate in a week.

In mid-December, a partner of GIC had entered into a joint venture with Gurgaon-based Vatika Group to develop two residential projects in Gurgaon with development capacity of over 2.3 million sq-ft.

Neeraj Rao,

15th January 2015

Comment

After launching a dedicated real estate platform in 2011, KKR has entrust over $1.8 billion of equity to 29 real estate transactions in the US, Europe and Asia.

In 2014, KKR started the real estate business in India by structuring and participating in 3 transactions with an total amount of $190 million. In private equity space, KKR has been active in India since 2006, with total equity investments exceeding $1.5 billion.

Rajiv,

15th January 2015

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The amount to invested by GIC has not been disclosed. Through its first NBFC, KKR provided solutions across the capital structure. Since 2009, KKR has extended more than $2 billion of structured financing to 21 business groups in India.

According to KKR Real Estate, they are excited to serve a sector that is still under-built. While many lenders provide debt to this sector, there is a need for solution-oriented, non-dilutive capital for property developers. They intend to fill that gap and contribute to Indias residential and commercial real estate sectors.

Neeraj Rao,

15th January 2015

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A recent news came that KKR, the global investment firm, has formed its second non-banking financial company (NBFC) for the Indian market, with an investment from Singapores sovereign wealth fund GIC. The new platform will provide structured credit to the countrys real estate sector, the company said in a statement on Thursday

Rajiv,

15th January 2015

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And we can not forget that International private equity funds have become active in providing structured finance to real estate firms over the last few years.

Himani,

7th January 2015

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In spite of the pick-up in deals across real estate firms, the market remains weak. There has been a slight price increase in the residential segment across Mumbai, but it is lower than inflation. Residential sales in the high-end category did not witness traction from buyers and developers are now going back and redrawing their plans and launching compact houses with smaller ticket price.

Sishir,

7th January 2015

Comment

Yes Sishir,
And the total number of deals in the first half of 2014 had increased to 28, compared with 13 in the first half of 2013, and the average deal size increased by 16% to Rs.146 crore.

Himani,

7th January 2015

Comment

According to a report by international property consultancy Cushman and Wakefield in September last year, the 1st half of calendar year 2014 saw real estate PE investments of approximately Rs.4100 crore. The total investment in the 1st half of 2014 was more than double the investment seen in the first half of 2013 at Rs.1650 crore.

Sishir,

7th January 2015

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Do you know that KKR concluded its first real estate lending deal in June 2014, investing Rs.350 crore in Mumbai-based Wadhwa Groups luxury homes project, called The Address, located in the central suburbs of Mumbai.

Himani,

7th January 2015

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Earlier this group raised Rs.200 crore from Ajay Piramal-backed real estate fund Indiareit Fund Advisors Pvt. Ltd in 2011 for the 1973 project. The company has raised a total of Rs.500 crore from Indiareit Fund Advisors for 4 different projects including the 1973 residential towers.

Sishir,

7th January 2015

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The project called 1973, spread across 5 million sq-ft and 3 towers, is still under construction. According to a Mint report on August 2013, the 400 apartments in the 1973 project were being marketed as so-called bespoke sky bungalows (made to the customers' specifications) of 2500-18200 sq-ft and would be priced at between Rs.15 crore and Rs.100 crore.

Himani,

7th January 2015

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The the local arm of global investor Kohlberg Kravis Roberts and Co. LP (KKR), said one person directly familiar with the development and two bankers who met the firm to discuss fund-raising plans. They are negotiating the deal and the money is being raised for its luxury residential project in Worli, said the first person mentioned above.

Sishir,

7th January 2015

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