ADIA, Kotak invest $590 mn in Indian office space

Mumbai: Abu Dhabi Investment Authority (ADIA) along with an arm of Kotak Mahindra Bank will invest $590 million in Indian office spaces, both the entities announced on Monday.

Kotak Investment Advisors said it has closed its 12th real estate fund by forming the $590 million platform with a wholly-owned subsidiary of ADIA, as per an official statement.

The fund, which will be domiciled in the GIFT City, will invest in office spaces in the country, it said. Kotak Realty Fund's chief executive Vikas Chimakurthy said it has raised around $1 billion to invest in the realty sector in the last one year. Kotak Investment Advisors has raised, managed or advised more than $2.8 billion under its real estate fund series till now, as per the statement.

"Strong demand for offshoring, return to office increasing, growth of the services industry and Indian economy has seen substantial scope for creating a portfolio of quality office assets," Chimakurthy said.