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KKR Swoops in as Distress in India's Property Market Worsens

  • Developers struggling to complete projects amid sluggish sales
  • KKR, GIC, Piramal among funds snapping up real estate assets

A rusty six-story steel structure surrounded by tin-sheet huts stands on a prime plot overlooking one of Mumbai’s largest open spaces of greenery: The horse-racing track in the city’s plush Mahalaxmi area. What was to be a soaring luxury skyscraper from DB Realty Ltd. has been languishing for more than five years, with the developer’s website still claiming that the project will be launched soon.

It’s a familiar scene across India’s cities, where thousands of idle construction sites offer testament to byzantine approvals processes and debt-laden developers’ inability to finance projects to completion. It is also an opportunity too big to pass up for moneyed-up investors such as KKR & Co.