Kotak's investment arm, ADIA form $590m platform for office spaces

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Kotak Investment Advisors Limited (KIAL) on June 20 announced that it has formed a $590 million or Rs 4600 crore platform with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The Platform has been created for a real estate fund which will invest in office properties. It will be domiciled in Gujarat’s GIFT City.

"This is our 12th real estate fund and extends our successful relationship with ADIA. With the closure of this fund, we have raised around USD 1 billion in real estate in the last one year,” said Vikas Chimakurthy, CEO, Kotak Realty Fund.

"Strong demand for offshoring, return to office increasing, growth of the services industry and Indian economy has seen substantial scope for creating a portfolio of quality office assets. With multiple avenues for exit of such portfolios and increasing liquidity of completed assets, we intend to curate this portfolio to cater to increasing appetite for stabilised assets."

With this new Fund, KIAL said it has raised, managed or advised more than $2.8 billion under its real estate fund series. KIAL is the alternative asset management arm of the Kotak Group.

Mohamed AlQubaisi, Executive Director of the Real Estate Department at ADIA said, this new platform will focus on opportunities associated with long-term demand for Indian office space, which is being driven by global organisations seeking to capitalise on the country’s skilled workforce.

The KIAL management said it is targeting to become the "go-to" alternative assets manager for differentiated strategies for global investors.

"This is the first of many pools of capital that we intend to raise this year to address various Alternative Investment opportunities in India," it added.