ADIA Contributes USD 500 Million to The USD 1 Billion Real Estate Fund of Kotak

Abu Dhabi Investment Authority (ADIA) has committed a USD 500 million anchor investment to the USD 1 billion real estate fund managed by Kotak-Investment Advisors (KIAL) in Mumbai.

This is Kotak's thirteenth real estate fund headquartered in GIFT City, Gujarat. It will invest mostly in residential real estate in India.

As per Kotak Realty Fund CEO Vikas Chimakurthy, this is an opportunistic fund that can invest across diverse real estate asset classes and debt and equity capital stacks. The fund will focus largely on residential real estate assets. In around one and a half years, KIAL has raised approximately USD 1.5 billion across different real estate strategies with the initial closing of this fund.

KIAL was established in 2005 as an alternative assets firm in order to sharpen the group's private equity business. In June of this year, the business closed its twelfth office property investment fund in India. KIAL, in conjunction with a wholly-owned subsidiary of ADIA, established a USD 590 million platform for this GIFT City-based fund.

With this new fund, KIAL's real estate fund series has already raised, managed, or advised on over USD 3.3 billion.

As per Mohamed Al Qubaisi, the executive director of real estate investments at ADIA, the Emirate's sovereign wealth fund, this new platform will concentrate on prospects linked with the long-term demand for office space in India, which is being pushed by multinational corporations trying to capitalise on the talented workforce. It also affords us the chance to expand our connection with Kotak, with whom we have invested effectively for years.