In the largest real estate fund exit in India, Kotak Realty Fund sold one of its prime commercial property assets in western Mumbai to a real estate fund of Tata Realty and Infrastructure for an enterprise value of Rs525 crore.
Kotak Realty Fund, a unit of Kotak Mahindra Bank, was one of India's first private equity funds and has assets worth $850 million under management. The firm's maiden fund, the Kotak India Real Estate Fund – I, made a hefty profit for it within five years, following the sale of Peepul Tree Properties Pvt Ltd, which owns an information technology park in Goregaon.
The Peepul Tree IT park comprises 700,000 sq ft of leaseable area and counts among its tenants firms such as Accenture, HP, BNP, Tata AIG and Integron. The fund, which made an initial investment of Rs95 crore in the project, has received over Rs400 crore following the exit.
The fund has also invested in other properties including Lemon Tree Hotels Pvt Ltd – which operates a chain of hotels in a dozen cities, offering 1,000 rooms – Green Boulevard, an IT/ITeS commercial project in Noida, a mixed-use residential project in Chennai and a golf villas project in Bangalore.
Source: Domain B