ADIA considers $200 mn investment in realty sector

According to unconfirmed reports, Abu Dhabi Investment Authority (ADIA) considers an investment of about $200 million in the Indian property market and for this purpose, it roped in Kotak Realty Fund. It may be noted that Kotak Mahindra Bank runs the Kotak Realty Fund. ADIA manages the surpluses the Gulf emirate earns from oil exports. ADIA's plan to invest in the Indian real estate sector is reflective of the interest being shown by foreign sovereign wealth funds in the Indian market as against their traditional markets of US and Europe. Recently, another real estate fund, run by Housing Development Finance Corporation, received a commitment of $200 million from Oman’s State General Reserve Fund and the Government of Singapore Investment Corp (GIC) and Temasek. Already, ADIA is an investor in the Indian market. The authority picked up 11.22 per cent stake in Infrastructure Leasing & Financial Services. Also, it invested $50 million in Red Fort Capital, a real estate private equity fund. In all, ADIA has investments of about $400-$500 million in India. Kotak’s appointment comes a little over a year after ADIA hired an India-dedicated investment manager for real estate and infrastructure to look at direct investment opportunities in the country.