Kotak Realty raises Rs 1,600 crore for residential projects

Kotak Mahindra Group's private equity arm has raised Rs 1,600 crore to invest in residential projects across six cities over the next 3-4 years.

"We have closed a fresh commitment of Rs 1,600 crore from institutional investors for equity investments in residential projects in the six major metros," Kotak Realty Fund Chief Executive S Sriniwasan told PTI here on Tuesday.

He said the company will invest in projects coming up in cities like Mumbai, Delhi, Bengaluru, Pune, Hyderabad and Chennai. Sriniwasan further said the recent clarifications by the government enabled the company to structure this as an Alternative Investment Fund (AIF).

"Currently, there is enough liquidity for addressing debt requirements of the sector, so we felt probably there was need for equity as well. We feel this investment will help address the growing equity needs of the real estate industry in India," he said.

The company's Chief Investment Officer Vikas Chimakurthy said, "We anticipate that the correction in the residential market will reflect in land values over the next few quarters, which will make the equity investment argument attractive."