This is the fifth deal in India for the real estate focused investment firm.

Walton Street Capital, a Chicago-based real estate dedicated private equity fund, has come back after a gap of four years to invest in a string of three projects under development by Bangalore-based realty company Krishna Enterprises Housing and Infrastructure India Pvt Ltd (Krishna Enterprises), said sources close to the development.

When contacted by VCCircle, Anil Kumar, managing director, Krishna Enterprises, confirmed the development and said, “Investors including an affiliate of Walton Street Capital participated in the successful non-convertible debenture (NCD) issue for projects of Krishna Enterprises.”

The money has been raised for three residential developments that the developer is undertaking in Bangalore. According to Kumar, the projects are worth Rs 700 crore. 

VCCircle could not ascertain the transaction value. Sourav Goswami, managing director of Walton Street in India, declined to comment on the article.

Jones Lang LaSalle, Bangalore advised Krishna Enterprises on the transaction.

Krishna Enterprises was established in 1990 and its projects include townships with villas, villaments and apartments in north Bangalore.

The fresh funding will support its three ongoing projects—Krishna Mystiq, a 6.3 acre development off Hosur Road which is about to be launched; Krishna Northwoods, which has 72 ready-to-move in villa tenements located at Thanisandra Main Road and Krishna Shelton spread across four acres located off Bellary Road.

The developer is planning to launch three more projects in six months.

Sources indicate that Walton Street has been actively scouting deals since early 2012 and it is the fifth investment of the investment firm in the country. Earlier it was reportedly looking to invest Rs 100 crore in North-based Supertech’s residential project called SuperNova, which did not materialise.

In 2007, Walton Street made its first investment in the country and picked 33 per cent stake in Shriram Hi-Tech, a Kolkata-based project of Shriram Properties, for Rs 100 crore. US-based private equity firm Starwood Capital also made a similar investment in that project. In 2011, the project-level investment was swapped by both PE players for an enterprise-level stake in Shriram Properties. The realty focused investment firm has investment in the US and Mexico besides India.

(Edited by Joby Puthuparampil Johnson)

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