Kotak Realty scripts exit in Peepul Tree sale to Tata Group

In one of the biggest real estate exits in India, Kotak Realty Fund, the PE arm of Kotak Investment Advisors Ltd, has sold its wholly owned undertaking Peepul Tree Properties to Tata Realty and Infrastructure Limited (TRIL) and Tata Realty Initiatives Fund 1 (TRIF 1) for Rs 525 crore ($117 million).

Peepul Tree Properties owns an IT park in Goregaon, a Mumbai suburb, measuring 7.2 lakh sq ft, which has leased to marquee tenants such as Accenture, HP, BNP, Tata AIG, BOB Legal and General, Integron and Prana Studios.

The fund bought the under-construction property from K Raheja constructions for Rs 230 crore with Rs 95 crore equity and the rest debt raised from Corporation Bank and Axis Bank.

On an initial equity investment of Rs 95 crore, Kotak India Real Estate Fund I has received over Rs 400 crore from the exit including internal accruals, a statement from the company said.