Kotak Realty Funds to raise 600 cr via 4th realty fund

MUMBAI: Kotak Realty Funds Group, the PE arm of Kotak Bank, is aiming to raise 600 crore through its fourth realty fund to be launched in the next few days. The fund will be mopped up from domestic market and invest predominantly in residential properties across India. It will have a green-shoe option of 100 crore.

"We will launch our fourth fund soon. Some of our first fund investors who received the entire principal in addition to over 20% return have already shown interest in participating in this new fund. We should be able to conclude this fund raising within the next few weeks, that is early June," said S Sriniwasan, CEO of Kotak Realty Fund. Kotak Realty has a total $750 million worth of assets under advisory through three funds, including $331 million Kotak Alternate Opportunities India Fund and an offshore fund of $265 million.

Its first fund, Kotak India Real Estate Fund I, launched in February 2006, with its total corpus of 457 crore has been completely deployed with other notable investments such as Lemon Tree Hotels, Pride Hotels, 3C Green Boulevard and Clover Golf community. Earlier this year, it returned the entire principle of this first fund in addition to over 20% returns to investors.

Kotak is raising the new fund after almost three years of launching its last fund - an offshore fund worth $265 million. A majority of this off-shore fund has also been deployed, and Kotak is in talks with some developers to invest the balance money in residential properties, primarily in Delhi-National Capital Region.