This investment will address the growing equity needs of the real estate industry in India.
The Kotak Mahindra Group closed a fresh commitment of Rs 1600 crore (US$ 250 million) for equity investments in realty projects in India from institutional investors.
S. Sriniwasan, CEO, Kotak Realty Fund said, “With this fund raise, we are delighted to receive a further vote of confidence from our investors. This is the result of our consistent and disciplined investment management strategy for over 10 years, ever since we started asset management in this class. The recent clarifications by the Government have also enabled us to structure this as an Alternative Investment Fund (AIF) and we are thankful to the Government for being responsive to the demands of the AIF Industry.”
Vikas Chimakurthy, Chief Investment Officer, Kotak Realty Fund said, “We have sufficient dry powder from our previous pool of capital to address the structured debt requirements of the real estate industry. This new pool of capital will address the equity requirements of the sector. We anticipate that the correction in the residential market will reflect in land values over the next few quarters which will make the equity investment argument attractive.”
