Kotak Investment Advisors Limited (KIAL) the asset management arm of Kotak Mahindra Grop on Tuesday announced that it had secured an anchor investment of $ 500 million from a subsidiary of UAE-based sovereign wealth fund Abu Dhabi Investment Authority (ADIA) for the 13th Real Estate Fund, which is a $1 billion platform that targets opportunistic real estate investments in India.
According to KIAL, they have so far raised, advised or managed over $3.3 billion under its real estate fund series.
Vikas Chimakurthy, CEO, Kotak Realty Fund said, “This is an opportunistic fund which can invest across various real estate asset classes and capital stack i.e. both debt and equity. The Fund will primarily target investments in residential real estate. With the first close of this Fund, KIAL has raised around USD 1.5 billion in real estate across multiple strategies in around one and a half years.”
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Mohamed AlQubaisi, Executive Director of the Real Estate Department at ADIA said, “This agreement extends our existing and longstanding relationship with Kotak. The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters.”
Investments for the Real Estate Fund
According to a report by Bloomberg, ADIA was expected to invest about $500 million into the property fund and Allianz SE was expected to invest around $220 million. The company plans to complete the fundraising by the end of this year and start on its investment in 2023. The focus is expected to be on residential property’s in some of India’s top cities.
KIAL was set up in early 2005, and as an alternative assets business they focus on different asset classes including Real Estate, Private Equity, Infrastructure, Special Situations Fund, and Investment Advisory, all led by independent investment teams.