Kotak Investment rolls out $400 mn office fund

kotak-investment-indiKotak Investment Advisors Limited (KIAL) has launched a new fund in partnership with DivyaSree Developers to develop and acquire commercial office assets across India.

The $400-million India Office Assets Fund I is anchored by a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and is one of the largest dedicated commercial office development platforms announced in India. While ADIA is putting in $200 million, the balance will be put in by KIAL and DivyaSree Developers.

“As we scale the asset management business, we will work with like-minded partners and create appropriate platforms to address a variety of capital requirements in India,” said S Sriniwasan, managing director, KIAL.

Bengaluru-based DivyaSree Developers will be the exclusive development partner and property advisor while KIAL will act as investment manager.

The fund is structured as an alternative investment fund under the stock market regulator’s guidelines. Its strategy is to develop greenfield projects as well as acquire under-construction and completed assets in key commercial office markets across India. “With this fund, we will consolidate our position in the three cities (Bengaluru, Hyderabad and Chennai) and also expand footprint in new key markets of Mumbai, Pune and National Capital Region,” said Bhaskar N Raju, managing director, DivyaSree Developers.