Kotak Investment Advisors (KIAL), a wholly-owned subsidiary of Kotak Mahindra Bank, has raised USD 380 million from a clutch of global investors through a new real-estate fund. The firm will use the proceeds for early and late stage real-estate project investments. The real-estate fund, which will invest only as debt, has been set up as an Alternative Investment Fund under SEBI regulations.
“Our new real-estate fund has been closed at an opportune time. We have a flexible investment mandate, enabling us to provide the much-needed capital to address the short-term financial dislocation in the real- estate financing market as well as long-term capital to address the liquidity issue,” Srini Sriniwasan, Managing Director at KIAL, said.
The fund is anchored by a clutch of leading global financial investors and is one of the largest dedicated real-estate financing funds closed in recent times in India, particularly during the Covid-19 pandemic. The new fund will target both early stage and late stage real-estate projects in residential, commercial, retail, warehousing and hospitality sectors, a statement said.
The new fund is the 11th fund in Kotak real-estate fund series since the first fund raised in 2005. With this fund, it crosses a total raise of USD 2.2 billion. This demonstrates strong confidence of global investors in Kotak Realty's long-standing track record and ability to source, underwrite and manage real-estate investments. It has a robust pipeline of transactions coming through as financing and structured credit solutions. This fund shall continue to capitalise on our resilient past experience of investing in 60 plus real-estate transactions, says Vikas Chimakurthy, CEO, Kotak Realty Fund.
