Global investment firm KKR has invested Rs 200 crore in real estate firm Signature Global for the development of affordable housing projects.
Global investment firm 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.
The company is into the development of affordable housing projects. It is constructing seven projects, having 7,400 dwelling units, in Gurgaon 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," Signature Global Co- founder and Chairman Pradeep Aggarwal told reporters here.
KPMG India and Yes Securities acted as financial advisors to the transaction. KKR has invested through its real estate focused non-bank finance company.
Aggarwal said the company is developing seven projects currently, of which three would be delivered by 2018-end.
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 and announced launch of two projects in Gurgaon 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 as well 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.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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