Kotak Realty Fund makes Rs 838 crore exit from Lodha’s Palava City
, ET Bureau|
Mar 09, 2018, 09.14 PM IST
MUMBAI: Kotak Realty Fund has made an exit worth Rs 838 crore from Lodha Developers’ township project Palava City on the outskirts of Mumbai. The real estate private equity fund has achieved an internal rate of return (IRR) of 18.75% through this exit in less than 2.5 years.
Kotak Realty Fund, a part of Kotak Investment Advisors, had invested Rs 540 crore in this project in 2015 through its $400 million offshore fund.
“We have had a successful exit with superior returns and smooth relationship with Lodha Group and would like to do more business with the company,” S. Sriniwasan, MD of Kotak Investment Advisors, told ET.
Calls and text message to Abhishek Lodha, MD, Lodha Group remained unanswered until the time of going to press.
Raised in raised in 2013-14, the $400 million offshore fund included a commitment of around $200 million from sovereign wealth fund Abu Dhabi Investment Authority (ADIA). The fund has made several exits at an average IRR of 20%.
One of the early entrants in the private equity real estate industry in India, Kotak Realty Fund has so far raised $1.49 billion in aggregate capital commitments since its establishment in 2005.
It has invested in 45 projects and companies across commercial office, residential, retail, industrial and hospitality segment of real estate. Out of the 45 investments made till date, there have been partial or full exits in 40 investments.
The fund had recently achieved 21% IRR through an exit from its investment worth Rs 125 crore in a project of Gurgaon-based realty developer SS Group.
Kotak Realty Fund, a part of Kotak Investment Advisors, had invested Rs 540 crore in this project in 2015 through its $400 million offshore fund.
“We have had a successful exit with superior returns and smooth relationship with Lodha Group and would like to do more business with the company,” S. Sriniwasan, MD of Kotak Investment Advisors, told ET.
Calls and text message to Abhishek Lodha, MD, Lodha Group remained unanswered until the time of going to press.
Raised in raised in 2013-14, the $400 million offshore fund included a commitment of around $200 million from sovereign wealth fund Abu Dhabi Investment Authority (ADIA). The fund has made several exits at an average IRR of 20%.
One of the early entrants in the private equity real estate industry in India, Kotak Realty Fund has so far raised $1.49 billion in aggregate capital commitments since its establishment in 2005.
It has invested in 45 projects and companies across commercial office, residential, retail, industrial and hospitality segment of real estate. Out of the 45 investments made till date, there have been partial or full exits in 40 investments.
The fund had recently achieved 21% IRR through an exit from its investment worth Rs 125 crore in a project of Gurgaon-based realty developer SS Group.
