Kotak Realty Fund closes US$ 250 million equity fund
This investment will address the growing equity needs of the…
This investment will address the growing equity needs of the…
Kotak Realty Fund, owned by India’s fifth largest private sector lender by revenue, raised Rs.523 crore to lend to real estate developers with an assured return.
Kotak Realty Funds Group, the PE arm of Kotak Bank,…
Tata Realty Initiatives Fund-I, managed by Tata Realty and Infrastructure Ltd, has bought over Kotak India Real Estate Fund-I, a $100 million (Rs.450 crore) fund managed by Kotak Realty Fund in Peepul Tree Properties Pvt. Ltd for Rs.385 crore.
Track2Realty: Transactions in India’s real estate space might have slowed down over the last two quarters, but the sector has not been overwhelmed by the state of the wider economy. Despite the subdued pre-election economic scenario, in fact, the period observed an increase in private equity activity.
Track2Realty Exclusive: Funding, or rather lack of it, has been one of the key concerns of the real estate developers throughout 2013, yet if some of the key policy decisions that have been taken in the year it seems 2014 is all set to get big ticket funding. The money is poised to be invested in the sector and if not as private equity, the biggies will put in money through Real Estate Investment Trust (REIT).
Track2Realty Exclusive: The realty market has been pretty exposed to the greedy investors and vulture funding, not venture funding. In desperation the developers often lost track of what kind of funding was required and met with the disaster. Amidst the cyclic very high and very low there has been off balance debt-equity ratio as well. Of late, some developers tried within the box and some outside it. The needs and solutions are different for listed and unlisted companies. Still the sector is in search of right funding mechanism and as Track2Realty finds, are guinea pigs in the funding market.
Track2Realty-Agencies: Demand & supply mismatch is proving to be the burden for developers now, at least in the funding market. Most of the PE deals in the year so far has fallen into residential projects. PE players are investing in projects for shorter duration and with better cash flows.
Tata Realty and Infrastructure Ltd (TRIL) is planning to raise two India-focused realty funds, including a $500 million international fund and Rs 300 crore ($55 million) domestic fund, according to reports in a section of media.
Over the last year, there has been an unequivocal crystallization of Indian cities that continue to attract serious investment into real estate. This is directly correlated to the economic dynamics now working in the country. If India is to achieve even a conservative GDP growth of 6% per year, it emerges that only three cities – Mumbai, Delhi and Bangalore – have the potential to deliver. The reason for this is that close to 2/3rd of the overall development of office space in the country is now taking place in Mumbai, Delhi and Bangalore.