Kotak Mahindra Group's asset management arm Kotak Investment Advisors Ltd (KIAL) said on Tuesday it secured a $500 million investment from a unit of the UAE-based sovereign wealth fund Abu Dhabi Investment Authority (ADIA) for its $1 billion real estate fund.
Kotak Investment Advisors Ltd said it has so far raised, managed or advised over $3.3 billion under its real estate fund series.
"The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters," said Mohamed AlQubaisi, executive director of ADIA's real estate department.
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Abu Dhabi Investment Authority was expected to chip about $500 million into the property fund, while Allianz SE was expected to invest about $220 million, Bloomberg had reported earlier. Kotak Investment plans to complete the fundraising by the end of this year and to embark on its investment in 2023, focusing on residential property in India’s top five cities, Bloomberg had reported.
Abu Dhabi Investment Authority is a diversified investment institution that invests on behalf of Abu Dhabi government.
{{/usCountry}}Abu Dhabi Investment Authority is a diversified investment institution that invests on behalf of Abu Dhabi government.
{{/usCountry}}Kotak Investment Advisors Ltd. is backed by Asia’s richest banker Uday Kotak. He founded Kotak Mahindra Bank, which provides commercial and investment banking, and deals in insurance and brokerage services. Kotak has a net worth of about $13.9 billion as the country’s ninth-richest person, according to a Bloomberg report from October.