Kotak Realty Fund to invest Rs 170 cr in BPTP’s Gurgaon Project

NEW DELHI: Kotak Realty Fund is investing Rs 170 crore in NCR-based developer BPTP’s residential township project Astaire Gardens in Sector-70A of Gurgaon. While the township project is spread over 102.2 acres, Kotak is taking over 50% stake in a 70-acre part of the project where BPTP is selling plots and villas.

Kotak is investing in the project through its foreign fund Kotak India Real Estate Fund 1. A banking source close to the development said “this is a preferred equity transaction with a hurdle of 18-20%.” This would mean that Kotak will get a preferred return first after which the rest of the return will be shared between the fund and BPTP.

Kotak Realty Fund declined to comment on the deals. BPTP too declined to comment. The fund has also lent Rs 80 crore to another developer Orris Infrastructure for its group housing project in Gurgaon.

“After the recent guidelines from the Department of Industrial Policy and Promotion providing clarity regarding structured equity transactions, the Indian real estate private equity market is unlikely to witness plain vanilla equity deals. Most deals happening today are essentially structured transactions with preferred returns built in,” says Anckur Srivasttava, chairman of GenReal Property Advisers.