Monday, November 19, 2007

Kotak global realty fund raises $200 mn

Kotak India Real Estate International Fund (KIREF) raised close to $200 million (Rs 800 crore) in its first closure recently as investors from the US, Europe and Japan put in money betting on the booming Indian realty market.
The fund, which is the second real estate fund by Kotak and first international fund dedicated to the sector, is aiming to gather a corpus of Rs 1,500 crore. It will be completed in the next two quarters from countries including Germany and Korea, according to sources.
The fund’s investment strategy is to participate in the estimated $45-50 billion expansion across the real estate sector in India over four years. The fund will capitalise on attractive real estate investment opportunities across all sectors, including but not limited to commercial, residential, retail, lodging and leisure.
With this first closure, the Kotak Realty Fund arm’s assests under management are now  $700 million ($500 million from KIREF-1 and Kotak Indian Alternate Opportunities Fund and $200 million from KIREF International Fund).
KIREF-I, the firm’s first realty focused fund, had raised Rs 450 crore, which has been fully invested in nine realty companies such as Shobha Developers, NDR Warehousing, Lemon Tree Budget Hotels, Pride Hotels among others.
Kotak India Alternate Opportunities Fund, which focuses on real estate and allied opportunities, raised an aggregate corpus of over Rs 1,600 crore ($400 million).


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