Kotak Realty Fund, an $800 million (Rs3,672 crore) real estate private equity (PE) fund from Kotak Mahindra Group, will invest Rs270 crore to acquire stakes in a Mumbai-based realty firm and a slum rehabilitation project and a Bangalore-based developer, chief executive S. Sriniwasan said.
The fund will spend Rs100 crore to acquire a 60% stake in Star Light Developers Pvt. Ltd and another Rs100 crore for 50% of the slum rehabilitation project undertaken by Ackruti City Ltd near Mumbai’s international airport, Sriniwasan said. It will spend Rs70 crore to purchase a 60% stake in Bangalore-based Lalith Gangadhar Constructions Pvt. Ltd.
The PE fund had in 2007 bought an 11% stake, then worth Rs145 crore, in Sunteck Realty Ltd, the parent company of Star Light, which is developing a residential complex in Mumbai’s Bandra neighbourhood that’s being sold at Rs35,000 per sq. ft. Residential space sells for Rs30,000-35,000 per sq. ft in the area.
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