The Townsend Group is investing in Indian real estate debt through a vehicle managed by KKR, joining Singapore’s sovereign wealth fund GIC in KKR’s Non-Bank Finance Company (NBFC).
Prashant Tewari, principal at The Townsend Group, said: “The strong secular demand for middle-market housing requires innovative credit solutions and long-term capital.
“The platform provides our clients with a thoughtful framework to execute in India and a strong investment partner with specialised, local market and property expertise.”
The NBFC typically provides senior finance to property developers in India’s residential and commercial real estate sectors.
Townsend said the investment was a unique opportunity within a select emerging market, with a lack of long-term capital and strong urbanisation trends.
Sanjay Nayar, chief executive of KKR in India, said additional, long-term capital from Townsend allowed the NBFC to “better fulfil a critical market need by assisting developers with solutions best suited to their needs”.
KKR is building its Indian real estate financing platform, Nayar said.