Jan 9, 2007

Kotak Realty lines up $350 mn fund

Kotak Realty, the real estate investment arm of Kotak Mahindra Ltd, is raising its second fund worth $350 million. The fund has got commitments from international investors, financial institutions, multilateral agencies and high-net worth investors in the United States, the Middle East and Europe for investing in Indian real estate. The fund is expected to be closed in the next 5-6 weeks.

In May 2005, Kotak Mahindra Investments started Kotak Realty Fund with the setting up of the Kotak India Real Estate Fund I — a $100-million fund for investing in real estate.

Kotak Realty’s first fund, a closed-ended fund of seven years, is said to have deployed nearly 65-70% of its corpus. While it invested through the pre-IPO placement in Bangalore-based Sobha Developers, the fund has also invested in the Delhi-based hotel chain Lemon Tree Hotels and Red Fox Hotels.

Both these hotel chains have also been funded by private equity major Warburg Pincus. Lemon Tree Hotels operates in the mid-price segment and caters to business and leisure travellers. The fund, which will be organised as a scheme of Kotak Mahindra Realty Fund, will have Kotak Mahindra Investments Ltd as the investment manager

Source : ET

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