KKR, the noted global investment entity based in the United States, has pumped in a handsome Rs. 180 crore for a prime mixed-use project at Rajarhat. This development is regarded as a major milestone for Kolkata’s real estate market, particularly in the area and surrounding regions since this is a rare scenario where a leading equity firm has confidently invested in the city’s real estate space. KKR has invested in Mani Casadona which is majorly an office complex with a residential zone and retail spaces.
The transaction has already been concluded as per reports. KKR’s own real-estate centric NBFC has reportedly financed this mega deal. The plot is located at Action Area II and covers around 13 acres. The plot has been developed by Magus Bengal Estate LLP with 1.7 million sq. ft. in cumulative built-up space and around 700, 000 sq. ft. has already been occupied according to reports. KKR has been making investments in the Indian market from the year 2006 onwards and the Mumbai office of the firm was established in the year 2009. The firm has already deployed approximately $3 billion for its Indian companies via the private equity arm and offered $5 billion and more as financing for companies through its realty and corporate centric NBFCs. KKR is reportedly considering several other projects of the Mani Group including Durgapur’s IQ City spanning 100 acres where there is also a medical college and hospital and the proposed project for assisted living at Baruipur.
This mega deal will enhance overall scope for other real estate developers in Kolkata and benefit the New Town-Rajarhat stretch even more in terms of more investments into big-ticket real estate projects both in the residential and commercial segments. Residential real estate in India has already started garnering funds driven by the boom in affordable housing. Kolkata has lower annual transactions in terms of office spaces although things should pick up now after this mega deal.
With connectivity improvements, the influx of major companies and setting up of mega office campuses, Rajarhat-New Town is expected to be a major growth driver for the residential real estate sector in Kolkata over the next few years. Social infrastructure is being rapidly developed in this stretch as well.
