As affordable housing – powered by the government – has become a trend among homebuyers and builders, Kotak Realty Fund has decided to raise a total of $100 million to invest in multiple residential projects across India.
The subsidiary of Kotak Mahindra Bank received a good response from offshore investors. Reportedly, the private equity fund already has total worth $50 million deal from multiple global institutional investors. The fund will have a total tenure of nine years including two extensions of one year each.
Kotak Realty is planning to invest the fund into several potential areas of top 10 property markets across India including cities like Mumbai Metropolitan Region, National Capital Region, Bengaluru, Pune and Hyderabad. The affordable homes prices would be in the range of Rs 30 lakh to Rs 75 lakh.
Since its inception in 2005, Kotak Realty has generated total $1.47 billion capital and invested in almost 40 projects across verticals like commercial office, residential, retail, industrial and hospitality sectors.
Source: ET Realty