Kotak Realty Fund backs KVN Properties with Rs 1,000 crore bet on residential growth
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Kotak Investment Advisors, through its Kotak Realty Fund , plans to invest Rs 1,000 crore in KVN Properties , an institutionally-backed land aggregation platform, said people familiar with the matter.The deal is structured in two tranches of Rs 600 crore and Rs 400 crore through debentures with the option of converting into equity at a later stage, the people said.'The documentation is in advanced stages and the closure is expected by the end of this month,' said one of the persons cited above.For KVN, led by real estate veteran Venkat K. Narayana, the latest infusion provides the growth capital required to rapidly expand its land portfolio across major metros. The company has set a target of making land parcels with a development potential of 10 million sq. ft. available by FY26 and building a strong residential pipeline for FY27 and FY28 in the major metros.'These parcels will be monetised through joint development agreements or joint ventures with leading developers, creating a supply chain of development-ready land for a market where speed of execution and delivery have become decisive factors,' said the person cited above.A second person said the Kotak commitment is more than a financial transaction. 'It is a validation of the land aggregation model, which is increasingly becoming central to the future of residential development in India. This deal signals that institutional investors are ready to back platforms that bring scale and governance to a fragmented part of the real estate ecosystem,' this person said.Kotak and KVN Properties declined to comment on the deal.KVN has faced early traction in its partnership-led approach. It recently finalised a joint venture with the Puravankara Group to develop a 24.59-acre land parcel in North Bengaluru, as well as a development management agreement with Assetz Group for a 5.67-acre parcel in the same micro-market.Together, these projects represent a potential saleable area of 4.48 million sq. ft. and a projected gross development value of over Rs 4,300 crore. Both developments are expected to be launched by this fiscal year-end, benefiting from strong housing demand in Bengaluru and its expanding connectivity to key employment hubs.Industry experts believe that platforms like KVN are well-positioned to capitalise on this momentum by acting as strategic enablers for developers.'Developers today need speed and certainty. A trusted partner that can systematically acquire and aggregate land parcels, and deliver them in development-ready form, removes a critical bottleneck and reduces execution risk,' said a senior real estate advisor, requesting anonymity.Kotak's potential investment in KVN tracks with a buoyant phase for the residential real estate market. According to Colliers, private equity investments in the residential sector reached $1.5 billion in the first half of 2025, nearly doubling from the same period last year. This surge has been supported by rising income levels, favourable demographics, and connectivity improvements driven by infrastructure expansion.In the first quarter of 2025 alone, more than 65,000 housing units were launched across India, with Mumbai, Pune, and Bengaluru together accounting for 64% of the new supply. Sales momentum was equally robust, with Mumbai, Pune, and Delhi-NCR making up 62% of transactions during the period.'With housing demand surging and land aggregation emerging as the missing link, this deal allows Kotak to position itself early in a segment that will define the next decade,' said a person aware of the fund's strategy.For Kotak, the investment into KVN adds to a growing roster of high-profile real estate bets. Since its inception in 2005, Kotak Realty Fund has raised more than $3.5 billion across multiple vehicles spanning residential, office, retail, hospitality, and warehousing. In April 2024, Kotak Alternate Investment Fund, alongside the Abu Dhabi Investment Authority (ADIA) committed Rs 2,001 crore into four large residential projects of a South India-based real estate firm across Bengaluru, Mumbai, Delhi, and Goa, with a combined development potential of 13.5 million sq. ft.Gurugram-based Elan Group also raised Rs 1,200 crore from Kotak Real Estate Fund in 2024.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
26 minutes ago
- Indian Express
Mohali MC plans mechanical cleaning of C-roads; Rs 25 crore development works on agenda
The Mohali Municipal Corporation is set to take a major step in city sanitation by introducing mechanical sweeping for C-roads (inner lanes). The proposal will be tabled in the MC meeting scheduled for August 22. Officials said the MC area, including villages, has a road length of 303.44 km, of which 101 km are C-roads. These will now be cleaned weekly by machines. The plan also includes lifting of dry leaves, with an estimated cost of Rs 4 crore over three years. The meeting will also consider development projects worth Rs 25 crore, including laying premix on main roads, installing iron grills, building new libraries, and upgrading community centres. Officials said these projects aim to strengthen Mohali's infrastructure and move the city towards a 'smart city' model. The agenda includes some table items regarding the boundary wall of the dumping collection centre near Sector 74, which has already faced protests from residents. Another proposal seeks to break the monopoly of private garbage collectors by hiring a professional company for door-to-door collection and segregation of waste. This, officials said, is the 'need of the hour'. However, the move has drawn sharp criticism from elected members. Deputy Mayor Kuljit Singh Bedi, former deputy mayor Manjit Singh Sethi, councillor Jasbir Singh Manku and Anuradha Anand, both Finance & Contract Committee members, announced their opposition. They said, 'The MC's experiment of mechanical sweeping on B-roads has already failed. When machines cannot clean B-roads, how can they work on narrow C-roads?' They added that in many villages falling under MC Mohali, C-roads are so congested that 'even a bicycle cannot pass'. The councillors also questioned the fate of existing MC employees who currently clean these 'C' roads. The August 22 meeting is expected to be crucial, with decisions impacting both sanitation and development across Mohali.
Indian Express
26 minutes ago
- Indian Express
Balganga dam project: HC upholds Tribunal order asking state authorities to pay Rs 303 cr to firm
In a setback to Maharashtra government and its authorities, the Bombay High Court earlier this month upheld the majority award passed by the arbitral tribunal in April 2019 that directed the authorities to pay Rs 303 crore to FA Enterprises, a private firm, towards unpaid bills for construction of Balganga dam. The HC through August 12 verdict restored the arbitral tribunal award related to the project of water supply to expanding areas of Navi Mumbai and for drinking and Industrial purposes. The copy of the order was made available on Wednesday. The HC observed 'findings of the Arbitral Tribunal are based on the materials on record and on a proper appreciation of evidence.' The two-judge bench noted that the majority award had held termination invalid as the firm had taken substantial steps to get forest land clearance. Therefore, there was 'no legal basis for the single-judge bench to have upset this finding.' Justice Karnik for the division bench recorded, 'We are satisfied that the view taken by the Arbitral Tribunal on the basis of the evidence on record is a plausible view. In such circumstances there was no scope for the Single Judge to have interfered with the award of the Arbitral Tribunal in the exercise of its jurisdiction under Section 34 of the of the Arbitration and Conciliation Act, 1996.' In a meeting held in January, 2009 under the chairmanship of the then state Water Resources Development (WRD) Minister, it was decided to construct a dam on Balganga river, near Niphad village in Pen taluka of Raigad district to meet the drinking water needs of Navi Mumbai's growing population and industries. The CIDCO was to bear the capital cost for Dam development and would get ownership right over the water and construction was to be executed by the WRD through KIDC. In May, 2009, the KIDC issued a work order to FA enterprises for nearly Rs. 495 crore and in June, 2011, project cost was revised to Rs. 1, 220 crore, which was disputed by CIDCO, compelling it to form expert committees to ascertain the same. 'Due to continuous pressure from banking institutions,' the FA Enterprises in 2013 approached the HC, after which an arbitral panel comprising representatives of the authorities and the firm was formed. The HC appointed its presiding member. Meanwhile, the Anti-Corruption Bureau (ACB) in August, 2015 filed a chargesheet against the firm and others for corruption and other irregularities. The next month, the private firm claimed an amount of Rs 536.56 crore, which the authorities opposed. In 2016, the KIDC terminated the contract of the private firm. Three out of five members of the tribunal in April, 2019 passed a majority award directing KIDC to pay to the private firm a sum of Rs 303 crore, prompting the authorities to challenge it before the High Court. The single-judge bench of the HC in May, 2020 set aside the majority award. Thereafter the aggrieved private firm moved the two-judge bench of HC with appeals against the May, 2020 judgement. Accepting submissions by senior advocate Aspi Chinoy for the firm, the HC on August 12 held that there was no 'patent illegality' in the award and the Tribunal's decision was a 'plausible view,' therefore the same required to be restored.
The Print
an hour ago
- The Print
Onion prices double after Bangladesh allows import: farmers' body
However, the rise in the prices of the kitchen staple is still low compared to the production cost, which is over Rs 2,200 per quintal, according to Dighole. 'The prices had slumped to Rs 800-1,200 per quintal in recent months. After Bangladesh allowed the import from India, prices of onions have increased to about Rs 1,500 to 1,600 per quintal,' Maharashtra State Onion Producers Association president Bharat Dighole told PTI. Mumbai, Aug 20 (PTI) Onion prices spiked from about Rs 800 per quintal to Rs 1,600 after Bangladesh allowed its import from India, according to a farmers' association. He said the Bangladesh government's move to allow imports from August 14 to December 13 will provide relief to onion growers. Dighole claimed that agriculturists are facing huge losses due to a glut in the onion crop and higher production costs. 'Onion cultivation in Maharashtra during the rabi season is around 1.45 crore tonnes. Onion producers believe that a substantial balance in domestic supply and export will yield profit,' he added. Lasalgaon in Nashik district has the largest onion market. The Lasalgaon onion market rate serves as a benchmark, influencing onion prices across the Asian market. PTI MR NSK This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
