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Kotak Realty, DivyaSree Create Fund For Office Spaces In India

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Kotak Realty, DivyaSree Create Fund For Office Spaces in India

The India Office Assets Fund I worth $400 million is a joint collaboration between DivyaSree Developers and Kotak Realty Fund and it is backed by the Abu Dhabi Investment Authority

DivyaSree Developers and Kotak Realty Fund have collaborated to begin a $400 million fund named The India Office Assets Fund I in order to create and purchase commercial office assets in India. The fund is supported by a unit of sovereign wealth fund Abu Dhabi Investment Authority (ADIA). This is one of the few times when the entire fund is being financed by a large limited partner like ADIA.

DivyaSree is the sole development partner and property adviser for the fund and Kotak Investment Advisors Ltd (KIAL) is its investment manager. It is created as an alternative investment fund (AIF) under Sebi regulations.

The aim here will be to create greenfield projects as well as acquire under-construction and completed commercial office assets. The cities the fund is targeting are Mumbai, Bengaluru, Hyderabad, and Pune.

TThe fund, also called the Kotak-DivyaSree fund, is coming close to the heels of the opening of the Rs 4,750 crore initial public offering of Blackstone Group Lp-sponsored Embassy Office Parks real estate investment trust (REIT). It is India’s maiden REIT.

Vikas Chimakurthy, chief executive officer of Kotak Realty Fund confirmed the news. “We have a compelling opportunity to develop and operate quality commercial assets for marque global customers. This is the first time in India where a financial institution and a developer have come together on a fund platform,” Vikas stated.

Especially since last year, the country’s commercial real estate market has been on the rise. Top global players like GIC and Blackstone among others have pooled in a lot of capital investment. The residential sector, on the other hand, has been through a massive downfall with unsold inventory piling up by the day. This has made a few developers, who previously were known to be experts in residential real estate, to venture into commercial realty.

DivyaSree Developers’ MD Bhaskar N. Raju hopes that this fund will help cement the company’s footprints in Mumbai, Pune and NCR. As of now, the company has a strong foothold in the office space real estate in Bengaluru, Hyderabad and Chennai.

ADIA recently also made headlines for pooling in $500 million to a new distressed fund backed by Kotak Investment Advisors Ltd, which is the sister investment company of Kotak Mahindra Bank.

 

Source: livemint.com

ALSO READ: DivyaSree Group Buys Office In UB Tower From Diageo

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