NEW DELHI: Kotak Investment Advisors Limited (KIAL) has secured an anchor investment of $ 500 million from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for its 13th Real Estate (RE) Fund, a $1 billion platform targeting opportunistic real estate investments in India.
With this new fund, KIAL has raised, managed or advised more than $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.”
He added that with the first close of this fund, KIAL has raised nearly $1.5 billion in real estate across multiple strategies in around one and a half years. This fundraising comes at a time when housing demand in India is expected to hit a new high in a calendar year.
The latest data issued by real estate consultant Anarock predicted that total sales in the top 7 cities to exceed 3.6 lakh units in 2022. In the previous peak year of 2014, the top 7 cities saw 3.43 lakh units sold.
It added that despite increased interest rates and basic property cost, the top 7 cities saw homes worth Rs 1,55,833 Cr sold in the first half of FY23, rising yearly by 119%.
Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited said that Kotak’s Real Estate Investment practice has been a consistent performer over 17 years across cycles and strategies.