Prestige Group, a prominent real estate developer in India, said it has tied up with Abu Dhabi Investment Authority (ADIA) and Kotak Alternate Investment Fund to develop residential projects in India worth Rs 18,000 cr.
The parties will put in Rs 2,001 crores (around $240 million) in this venture.
"It is aimed at catalysing the development of early-stage residential projects, ensuring company's commitment to prudent expansion and diversified growth," Bengaluru-based company said.
The partnership will help Prestige find lower cost funds, while the other two will get superior returns from their investment.
The funds will be utilized for the development of greenfield residential projects in Bengaluru, Mumbai, Goa, and NCR.
Prestige Group has properties in segments such as residential, office, retail, hospitality, property management, and warehouses. The Group has completed 300 projects spanning a developable area of 188 million square feet.
The landmark deal with ADIA and Kotak AIF is expected to further strengthen Prestige Group's position in the Indian real estate market and contribute to the growth of the residential sector in the country.
Such partnerships are not rare in India's real estate space.
In 2017, Singapore's sovereign wealth fund GIC invested around Rs 1,990 crores in a joint venture with DLF, one of India's largest real estate developers, to develop rental assets.
In 2018, the Abu Dhabi Investment Authority partnered with US-based Hines in 2018 to create a $500 million investment platform for developing office projects in India.
Blackstone, a global alternative investment management firm, has collaborated with Embassy Group on several projects, including the development of office parks and the creation of India's first Real Estate Investment Trust (REIT).
In 2018, the Canada Pension Plan Investment Board (CPPIB) invested Rs 1,500 crores in a joint venture with Shapoorji Pallonji Group to develop office spaces in India.
Singapore's state investment firm Temasek partnered with Mahindra Lifespaces in 2018 to develop industrial and logistics parks across India.
Similarly, in 2019, US-based private equity firm Warburg Pincus invested INR 1,100 crores in a joint venture with Mumbai-based Runwal Group in 2019 to develop shopping malls in India.