UAE's ADIA, Kotak Arm To Invest $590 Million In Indian Office Spaces
Kotak Investment Advisors has closed its twelfth real estate fund by forming the $590 million platform with a wholly-owned subsidiary of ADIA.
Abu Dhabi Investment Authority, along with a unit of Kotak Mahindra Bank Ltd., will invest $590 million in Indian office spaces.
Kotak Investment Advisors has closed its 12th real estate fund by forming the $590 million platform with a wholly-owned subsidiary of ADIA, as per a statement released on Monday. The fund, which will be domiciled in the GIFT City, will invest in office spaces in the country.
Kotak Realty Fund has in the past one year raised about $1 billion to invest in the real estate sector, Chief Executive Officer Vikas Chimakurthy said. Kotak Investment Advisors has raised, managed or advised more than $2.8 billion under its real estate fund series so far.
"Strong demand for offshoring, return to office, growth of the services industry and Indian economy has seen substantial scope for creating a portfolio of quality office assets," Chimakurthy said.
Long-term demand for Indian office space is being driven by global firms seeking to capitalise on the country's skilled workforce, and the fund seeks to focus on opportunities associated with the same, said Mohamed Al Qubaisi, executive director at ADIA's realty department.
Kotak Investment Advisors' Managing Director Srini Sriniwasan said that the company is aiming to be the "go-to" alternative assets manager for differentiated strategies for global investors. He called the fundraise as a first in the multiple pools of capital it intends to raise this year to address various alternative investment opportunities in India.