KKR invests Rs 200 cr in realty firm Signature Global

The company will deliver three of the seven developing projects, by 2018-end

Global investment firm Kohlberg Kravis Roberts & Co Ltd (KKR) has invested Rs 200 crore in real estate firm Signature Global for the development of affordable housing projects.

Signature Global, one of the key stakeholders of financial firm SMC Group, had last year raised Rs 150 crore from ICICI Prudential.

It is constructing seven projects, having 7,400 dwelling units, in Gurugram 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," said Signature Global Co-founder and Chairman Pradeep Aggarwal.

 

KPMG India and Yes Securities acted as financial advisors to the transaction. KKR has invested through its real estate focused non-bank finance company.

Stating that there is a huge demand for affordable homes in the country, he said the company plans to launch 15,000- 18,000 units during this fiscal year and announced the launch of two projects in Gurugram comprising 1,900 units.

In this year's Budget, the government accorded infrastructure status to affordable housing segment.

"We are also planning to enter Uttar Pradesh market. We will be starting projects in Raj Nagar Extension at Ghaziabad in a price range of up to Rs 25 lakh," Aggarwal said.

The company is exploring opportunities for affordable housing projects in Maharashtra and Gujarat in order to achieve its vision of developing 1 lakh homes by 2022.

Aggarwal said although the margin is less in affordable housing projects, the sales volume is higher.

To boost demand for rural and urban housing post demonetisation, the Prime Minister had announced interest subsidy of up to 4 per cent on loans taken under the Pradhan Mantri Awaas Yojana.

In urban areas, housing loans of up to Rs 9 lakh and up to Rs 12 lakh will receive interest subsidy of 4 per cent and 3 per cent respectively, while in rural areas, loans of up to Rs 2 lakh will get an interest subvention of 3 per cent.