Kotak Investment Advisors Limited, the company, which is backed by Asia’s richest banker Uday Kotak, is currently looking to raise funds of about 1 billion USD for a new fund, which is dedicated to investing in India’s residential real estate.
The information has been passed on to the person familiar with the matter.
It is predicted that the Abu Dhabi Investment Authority could contribute about 500 million USD to the property fund, while Alliance SE could invest about 220 million USD.
The information was shared by a person who has decided to keep his identity anonymous as the information is kept private.
The investors are in advanced talks with other investors for the fundraising event as remarked by the person.
The company aims to complete the fundraising by the end of this year and will focus on the residential properties in India’s top five cities to go on board with the investments.
The discussions are still going on, and the details, including the size and the investor lineup, could still change as revealed by the person.
The representatives from ADIA, Allianz, and Kotak Investments have refused to comment on the topic.
How has covid-19 helped Kotak Mahindra Bank?
Like many nations in the world, India has experienced an increased pandemic property buys as the low-interest rates propelled people to purchase homes. This has resulted in a strong rebound in house sale volumes.
But, in recent times, the market has started declining in response to the nation’s central bank tightening monetary policy to curb inflation.
The Reserve Bank of India raised the key rates of interest by half a percentage point to 5.9 percent last month. It accounts for the fourth consecutive hike taking its cumulative tightening since May to 190 basis points.
House sales volumes in the largest nine cities have declined to 7 percent in the second quarter compared with the three months.
The information has been collected from an online real estate analytics platform PropEquity. The volumes are still up by 96 percent on an annual basis.
Kotak Investments was founded in 2005 as a part of the Kotak Mahindra Group and has managed about 6.3 billion USD across various funds and platforms according to its website.
The company established a 590 million USD platform with AIDA in June. It focuses on property investment.
The company’s investment has raised, managed, or advised more than 2.8 billion USD under its real estate fund series.
Kotak Mahindra bank was founded by Uday Kotak and is situated in Mumbai. The company deals with insurance and brokerage services.
Kotak has a net worth of about 13.9 billion USD and the founder has been ranked as the ninth-richest person according to Bloomberg’s Billionaire Index.
It is predicted that Kotak Investment advisors, the special situation arm of Kotak Mahindra could have 9 billion USD under the present management by the beginning of the next year. The firm is led by Srini Srinivasan, who has learned the skill from Goldman Sachs to develop the business and make it reach the position where it is today.
Looking at the history of the branch, Goldman Sachs and Kotak Mahindra announced a joint venture investment bank in India by the name Kotak Mahindra Capital in 1995.
The venture is a combination of two smart and capable organizations and operated well for a while. Later, it was kept afloat by the opening of India’s stock markets to foreign investments two years before.
Kotak purchased Goldman’s stake in March 2006 for 70 million USD.
The joint venture has proved to be successful for one such organization- Srinivasan later became a key player and has helped Kotak become a leader in special situations.
edited and proofread by nikita sharma
