Kotak Investment Advisors, AIDA form $590-million platform to invest in Indian office assets

June 21, 2022

Kotak Investment Advisors Ltd (KIAL) on Monday announced that it has successfully achieved the closure of its 12th real estate (RE) fund for investments in Office Assets in India.

KIAL has formed a $590-million platform with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for the fund, which will be domiciled in GIFT City. With this new fund, KIAL has raised, managed or advised over $2.8 billion under its RE fund series, it said.

Vikas Chimakurthy, CEO, Kotak Realty Fund, said, “This is our 12th RE fund and extends our successful relationship with ADIA. With the closure of this fund, we have raised around $1 billion in real estate in the last one year.”

Increasing appetite for stabilised assets

“Strong demand for offshoring, return to office increasing, growth of the services industry and Indian economy has seen substantial scope for creating a portfolio of quality office assets. With multiple avenues for exit of such portfolios and increasing liquidity of completed assets, we intend to curate this portfolio to cater to increasing appetite for stabilised assets,” Chimakurthy added.

Srini Sriniwasan, Managing Director, Kotak Investment Advisors Ltd, said, “Kotak Alternate Assets is targeting to become the “go-to” alternative assets manager for differentiated strategies for global investors.”

Focussed strategy

“This pool of equity capital expands our footprint in RE Investments with a focused strategy. The GIFT regime and proactive regulator has made the process of pooling global capital in GIFT City flexible and smooth. This is the first of many pools of capital that we intend to raise this year to address various alternative investment opportunities in India,” Sriniwasan added.

Mohamed AlQubaisi, Executive Director of the Real Estate Department at ADIA, said, “This new platform will focus on opportunities associated with long-term demand for Indian office space.”

Published on

June 20, 2022

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