ADIA commits $500 mn to Kotak Investment Advisors’ $1 bn real estate fund

• Kotak Investment Advisors secured an anchor commitment of $500 million from the Abu Dhabi Investment Authority (ADIA).
• Domiciled in Gujarat’s GIFT City, Kotak Investment Advisors’ new fund will target residential real estate investments.
• The alternate assets arm of the Kotak Mahindra Group had earlier raised $590 million from an ADIA unit this June towards the office space market.

Kotak Investment Advisors secured an anchor commitment of $500 million from the Abu Dhabi Investment Authority (ADIA) for its $1 billion real estate fund, the company said on Tuesday.

Kotak Investment Advisors is an alternate assets arm of the Kotak Mahindra Group. With the anchor commitment from ADIA, Kotak Investment Advisors has raised, managed or advised more than $3.3 billion across its 13 real estate funds, the company said.

Kotak Investment Advisor’s 13th real estate fund will primarily target the residential sector.

“The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters,” said Mohamed AlQubaisi, executive director of ADIA's real estate department.

It is domiciled in Gujarat’s GIFT City, and will focus on markets like Mumbai, Bengaluru, Delhi-NCR, Pune, Hyderabad and Chennai.

“This is an opportunistic fund which can invest across various real estate asset classes and capital stack, that is, both debt and equity. With the first close of this Fund, KIAL 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.

Earlier in June, the company had entered into an agreement with an ADIA unit to set up a $590 million real estate platform, aimed at meeting the long-term demand for office spaces across the country.

Home sales rise 119% year-on-year in H1 FY23 in top seven cities

Home sales rose 119% year-on-year in H1 FY23 across the top seven cities of the country. According to an Anarock report, homes worth ₹1,55,833 crore were sold between April and September this year, up from ₹71,295 crore in the same period last year.

In terms of units, 1,73,155 units were sold in H1 FY23, up from 87,375 units in H1 FY22.

Mumbai alone accounted for 48% of the total value of homes sold in this period, with Delhi-NCR and Hyderabad in second and third places, respectively, maintaining their positions from the previous year.

“The data vouchsafes that the first half of FY23 was a highly upbeat period for the residential market in the top 7 cities, allaying fears that housing sales could be impacted by rising property prices and interest rates,” said Anuj Puri, chairman, Anarock Group.

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