Rs.1600 crore raised by Kotak Realty in residential projects

With a view to invest in residential projects across six cities over the next 3-4 years, Kotak Realty Fund has raised Rs.1600 crore from institutional investors. The private equity firm of Kotak Mahindra Group will be investing in residential projects in the six major cities of Mumbai, Delhi, Bengaluru, Pune, Hyderabad and Chennai.

Talking to PTI, Chief Executive Mr. Sriniwasan thanked the government for its clarifications as the same enabled the firm to structure the equity raised as an Alternative Investment Fund (AIF). Further he said, “Currently, there is enough liquidity for addressing debt requirements of the sector, so we felt probably there was need for equity as well. We feel this investment will help address the growing equity needs of the real estate industry in India.”

Discussing the recent development further, Vikas Chimakurthy, Chief Investment Officer said “We anticipate that the correction in the residential market will reflect in land values over the next few quarters, which will make the equity investment argument attractive.”