More than 90 per cent consolidation in Indian real estate at project-level; only a few (such as Indiabulls) consider exiting realty business altogether. After DeMo wiped out fly-by-night and many small developers, liquidity crisis led Big Boys to take up stuck or delayed projects. Preferred consolidation models include JVs, alliance, development management contract, land monetisation.
Kotak Realty Fund has reportedly invested a total of Rs 320 crore in two projects located in Chennai and Mumbai from its $250 million offshore-fund. The company has invested in a Rs 80-crore office project in Mumbai and Rs 240 crore in a shopping mall in Chennai. Both these projects are currently under construction.
In the latest report from Cushman & Wakefield, the top eight cities witnessed residential launches of approximately 25,800 units in the first quarter of 2017, registering a 16 per cent decline from the corresponding period last year. A closer look at the trend indicate that launches have seen a steady quarter-on-quarter (Q-o-Q) decline for the last four quarters, corresponding with the announcement of Real Estate Regulatory Act (RERA) 2016 in March last year and the demonetisation exercise in November 2016.
Kotak Realty Fund is a leader and one of the earliest entrants in the private equity real-estate industry in India. Since establishment in 2005, it has raised $1.47 billion in aggregate capital commitments and invested in 40 projects and companies across the commercial office, residential, retail, industrial and hospitality sectors.
Lodha Group has raised about Rs 540 crore from Kotak Realty Fund through a private placement of five-year non-convertible debentures. The funds will be used for the construction of one of the phases of Lodha´s township project, Palava City.
India is currently one of the fastest growing real estate markets in the world. It not just attracts domestic real estate developers but foreign investors. Indian luxury housing market is gaining momentum and holds immense potential.
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 again
Kotak Realty Fund has invested Rs 110 crore in a 29-acre group housing project being developed by the TDI Infrastructure in Kundli, Sonepat of Haryana in the national capital region. This is the first private equity investment in a project being developed by the company.
Realty firm TDI Infrastructure recently raised Rs 110 crore from private equity firm Kotak Realty Fund for developing its 29-acre housing project at Kundli in Haryana. This group housing project is a part of its 1,250 acre integrated township in Kundli, Sonepat.