Kotak Investment Advisors Limited (KIAL) on Tuesday announced that it has launched a new fund which will partner with DivyaSree Developers (DivyaSree), a leading Bengaluru-based real estate developer, to develop and acquire commercial office assets across India.
The $400 million India Office Assets Fund I is anchored by a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and is a dedicated commercial office development platform. DivyaSree is the exclusive development partner and property advisor for the fund and KIAL will act as investment manager. It is structured as an Alternative Investment Fund under SEBI regulations.
The fund’s strategy is to develop greenfield projects as well as acquire under construction and completed assets across key commercial office markets in India.
Bhaskar N Raju, Managing Director of DivyaSree Developers said: “We currently provide quality commercial spaces across South Indian cities of Bengaluru, Hyderabad and Chennai, where DivyaSree is a major player. With this fund, we will consolidate our position in the three cities and also expand footprints in new key markets of Mumbai, Pune and National Capital Region (NCR).”
Vikas Chimakurthy, CEO of Kotak Realty Funds said: “We have a compelling opportunity to develop and operate quality commercial assets for marquee global customers. This is the first time in India where a financial institution and a developer have come together on a fund platform.”
S Sriniwasan, Managing Director & CEO, KIAL said: “As we scale the asset management business, we will work with likeminded partners and create appropriate platforms to address a variety of capital requirements in India.”