Kotak Investment Advisors secures $500 mn first close from ADIA

Kotak Investment Advisors, alternate assets business manager of the Kotak Mahindra Group, has achieved the first closure of its $1 billion or ₹8,136 crore real estate fund through a secured commitment from the sovereign wealth fund Abu Dhabi Investment Authority (ADIA).

Domiciled in Gujarat’s GIFT City, this is Kotak’s 13th real estate fund that will primarily invest in residential properties across India’s key cities.

It has secured an anchor investment of $500 million or over ₹4,068 crore from a wholly-owned subsidiary of ADIA taking the sovereign fund’s investment in Kotak Realty Fund to $1 billion in less than six months.

Prior to this, Kotak Investment Advisors entered into an alliance with an ADIA entity to set up a $590 million or over ₹4,800 crore real estate investment platform in June this year.

The fund, which will be domiciled in Gujarat’s GIFT City, will be investing in office assets across India focusing on the top six property markets of Mumbai, Bangalore, Delhi-NCR, Pune, Hyderabad and Chennai.

“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, Kotak Investment Advisors has raised around $1.5 billion in real estate across multiple strategies in around one and a half years,” said Vikas Chimakurthy, CEO, Kotak Realty Fund.