Kotak Invests In Nirmal Group’s Project from New Offshore Fund
Kotak Realty Fund has made its very first investment from its latest offshore fund of $392 million, in a residential project being developed by Mumbai-based realty firm Nirmal Group. The project is in the early stages, with construction work not underway yet, in suburban Mulund.
Kotak Realty Fund has chosen the structured finance route – rapidly turning into the most preferred way for PE funds to invest in the realty sector. A combination of debt and equity, this route helps investors hesitant to take equity risks, breathe easy.
Kotak’s latest real estate offshore fund is its second overall. It had raised $265 million from investors back in 2007. Around 52% of whatever investments Kotak made in the first round has already been sold. This time around, sovereign wealth fund Abu Dhabi Investment Authority committed $200 million, in Kotak’s first close.
In addition to development, Kotak’s investment will be used to refinance some of Nirmal Group’s debt.
Source: Mint
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