The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi, with estimated assets under management of $625 billion, invested $300 million (Rs 1,800 crore) in the offshore fund of Kotak Realty Funds, said a senior real estate executive privy to the development.
He added Canada Pension Plan (CPP), the $183-billion pension fund, has committed investment of $200 million (Rs 1,200 crore) in the $500-million realty fund of Shapoorji Pallonji Investment Advisors, part of the Shapoorji Pallonji group, promoted by billionaire Pallonji Mistry.
When contacted, a senior Kotak Realty Fund executive declined to comment on the matter; a mail to ADIA did not elicit a response. While senior Shapoorji Pallonji Investment Advisors executives declined to comment on the matter, a mail to CPP didn't elicit a response.
"It is great that both the fund managers raised funds despite tough market conditions," said an executive involved in the fund-raising.
Recently, the $500-million offshore realty fund floated by HDFC Property Fund, a unit of mortgage lender HDFC, secured a commitment of $200 million from the Government of Singapore Investment Corp, investment firm Temasek and Oman's State General Reserve Fund, according to a recent Reuters report.
Between Kotak, Shapoorji Pallonji and HDFC, fund managers have raised $700 million from investors. Earlier, the three funds had found it challenging to raise funds, said the executive quoted earlier.