KKR has dragged Bengaluru-based Mantri Developers to the National Company Law Tribunal (NCLT) over a ₹145 crore credit facility that it had granted the company five years ago, according to people aware of the matter.
The US PE firm’s real estate lending arm, KKR India Asset Finance, has filed an application with NCLT to start insolvency proceedings against Mantri Developers alleging non-payment of dues by the company. KKR India Asset Finance had offered funding to Mantri Developers in 2016 for one of its residential projects.
Infosys chairman Nandan Nilekani owns a minority stake of 10% in KKR India Asset Finance through his family trust.
KKR and Mantri Developers did not comment.
ICICI Bank took possession of Mantri Developer’s corporate office in Bengaluru in August 2020 due to non-payment of dues.
The Bengaluru realtor first emerged on the market in the early 2000’s by launching high-rise residential buildings and luxury apartment projects in that city. The company’s founder Sushil Mantri belongs to a Pune-based business family.
Morgan Stanley invested $68 million in Mantri Developers in 2006. That was the US investment bank’s first real estate investment in India.
Mantri Developers has built over 24 projects in a span of two decades that includes senior living homes, shopping malls and offices. Residential projects are still its mainstay.
It is executing 20 million square feet of projects in residential, retail, office, hospitality, and townships in high-growth urban centres. The realtor has also created one of the largest malls in the country. The Mantri Square in Bengaluru is spread over 1.7 million square feet of space, and hosts over 250 retail outlets.
The government-sponsored Special Window for Affordable and Mid-Income Housing (SWAMIH) fund has agreed to offer Rs 400 crore of assistance to the developer to help it complete some of its ongoing residential projects.
KKR India Asset Finance has a loan and investment book of Rs 3,500 crore. The company has a capital adequacy ratio of over 50%. It had total income of Rs 469 crore in the financial year ended March 2021.
Net non-performing assets comprised 4.5% of its loan portfolio.
Since beginning real estate lending operations, KKR has provided funding to companies such as Lodha, Runwal Group, Kolte-Patil, Wadhwa Group, Bhartiya City Developers, Shapoorji Pallonji and Signature Global.
