Kotak Real Estate Fund, the real estate private equity arm of Kotak Alternate Asset Managers, said Tuesday it has made an investment in a Gurugram-based developer.
Kotak Alternate Asset Managers, which has so far backed about 90 companies since the inception of its real estate practice, said that it invested about Rs 1,200 crore in Elan Group.
The Gurugram-based developer, which is led by Rakesh Kapoor and previously backed by private equity firm PAG, will utilize these proceeds to fund its growth capital requirements.
This investment comes after the developer received about a $110 million capital infusion from global investment firm PAG in December 2022. The proceeds from that capital infusion were used for the development of its luxury housing project ‘The Presidential’. That year, the firm also bought land parcels in Gurugram to expand its housing and commercial properties in the market.
“This strategic investment from Kotak Real Estate Fund reinforces our commitment to delivering world-class residential, commercial and hospitality projects. With this financial backing, we are well-positioned to fast-track our ongoing projects and embark on new, innovative developments that will further elevate the quality and scale of our offerings,” said Sandeep Agarwal, the chief financial officer of Elan Group.
It is unclear how much capital has been invested out of Kotak Real Estate Fund’s latest investment vehicle. However, it has, so far, deployed about $3.5 billion across its 13 alternative investment funds (AIFs).
Among its recent bets in real estate, Kotak Alts partnered with Abu Dhabi Investment Authority (ADIA) in April. The two investors signed a Rs 2,001 crore (about $240 million then) deal with Prestige Estates Projects Ltd for housing projects. The deal involved the development of projects across Bengaluru, Mumbai, Goa, and the National Capital Region.
This wasn’t the first time Kotak Alts and ADIA had partnered for real estate investments in India. In November 2022, Kotak Alts received an anchor investment of $500 million from ADIA for its 13th realty fund, domiciled in Gujarat’s GIFT City, which had a target to raise $1 billion. The sovereign wealth fund of the Gulf emirate also backed Kotak Alts’ for its 12th realty fund, which had a target corpus of $590 million.
