InvestorQ : Is KKR getting into real estate financing in India?
indhumathi Sayani made post

Is KKR getting into real estate financing in India?

6 months ago

That is correct. KKR is getting into real estate financing through its NBFC, KKR India Asset Finance. It is planning to step up lending even as overall financing to the sector remains subdued. It sees a huge opportunity at this point of time. KKR India Asset Finance was set up in 2015 to focus on lending to residential projects in top cities and as AUM of $2 billion.

In fact, like most NBFCs, this one also found it hard to raise money after the string of defaults by IL&FS. This seriously impacted fresh lending and disbursals of sanctioned loans. On the other hand, the crisis was aggravated by the real estate developers.

However, KKR believes that the current environment provides a very meaningful opportunity for KKR India Asset Finance to scale up its business substantially in India to profitable levels. At present, the NBFC is aggressive in building up its book and is willing to take up that extra risk in the market.

Interestingly, KIAFL has consistently grown its loan book to reach Rs.4,000 crore over the last 3 years and plans to further enhance at the appropriate time. It has already managed to raise Rs.550 crore in the current fiscal year through traditional bank lines. It also boasts of a comfortable liquidity scenario.