By Raghavendra Kamath
Global investors are looking to put billions of dollars into Indian real estate again as they see improvement in both residential and commercial segments.
From Abu Dhabi Investment Authority (ADIA) to Goldman Sachs to CPPIB, a number of global investors are either tying up with Indian fund managers or developers to take part in India’s real estate sector.
ADIA, one of the biggest sovereign funds globally, is looking to invest in the new fund structure of Kotak Investment Advisors, the private equity arm of Kotak Mahindra group. The fund will lend to residential projects and developers, sources in the know said.
According to sources, ADIA, which held assets under management of $829 billion at the end of 2021, could invest as much as $1 billion (Rs 7,600 crore ) in the Kotak fund.
“Given the pick-up in residential sales, both investors think it is a right opportunity to invest in residential projects,” said sources.
When contacted, ADIA spokesperson declined to comment. A mail sent to Kotak did not elicit any response.
ADIA has an exisiting relationship with Kotak. In 2019, Kotak Investment Advisors raised $500 million from ADIA as an anchor investor for a distressed assets fund.
ADIA is also a primary investor in the $1.88-billion H Care-3 affordable housing fund of HDFC Capital. The initial close of the fund was announced in January this year.
Another global investor Goldman Sachs is looking to invest $2-3 billion in Indian real estate in the next three years, said sources.
Goldman Sachs is also in advanced talks with developers in Mumbai and Bengaluru to set up investment platforms in residential and commercial real estate, sources said.
“GS wants to do both equity and debt deals though it has done mostly debt deals in the last couple of years in real estate,” sources said.
Goldman Sachs has hired Mukesh Tiwari from Actis to head its Indian real estate business and is expanding the real estate team, sources said.
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