Kotak Realty Fund raises Rs 1,600 crore

In one of the largest fund-raising rounds for realty investments in recent years, Kotak Realty Fund has raised Rs 1,600 crore ($250 million) from institutional investors. Recently, ASK Group had raised Rs 1,400 crore for real estate investments in the country.

Vikas Chimakurthy, chief investment officer, Kotak Realty Fund, said: “We have sufficient dry powder from our previous pool of capital to address the structured debt requirements of the real estate sector. This new pool of capital will address the equity requirements of the sector.”

According to him, the correction in the residential market will reflect in land values over the next few quarters, which will make the equity investment argument attractive.

Kotak Realty Fund is a part of Kotak Investment Advisors, which is a subsidiary of Kotak Mahindra Bank.

Established in 2005, Kotak Realty Fund focuses solely on investments in real estate and allied businesses across different asset classes and cities. It has so far raised nearly $1.4 billion.

Kotak Mahindra and associates are significant shareholders in Business Standard Private Limited