Kotak Eyes 4,500 Crore Fundraise to Expand Real Estate Investments

Kotak Investment Advisors plans to raise ₹4,500 crore through its 16th real estate fund to finance residential, commercial and alternative property assets across major Indian cities and select tier-II markets.

Kotak Investment Advisors, the alternative asset management arm of Kotak Mahindra Group, plans to raise ₹4,500 crore through its 16th real estate fund to expand its investments across India's property market. The proposed fund, Kotak Real Estate Fund XIV, will deploy institutional capital across residential, commercial and alternative real estate assets through a combination of debt and equity investments.

The fund has a target size of ₹4,500 crore, including a green shoe option of ₹1,500 crore, and a sponsor commitment of 15%. It will have a tenure of seven years, with provisions for two one-year extensions. The investment period is set at three-and-a-half years.

Also read: Ahmedabad Real Estate Demand Rises 13.5% as Growth Accelerates

According to Vikas Chimakurthy, CEO of Realty Funds at Kotak Alternate Asset Managers, the fund will follow a hybrid investment strategy without a fixed allocation between debt and equity. It will seek opportunities across different market cycles, providing growth capital to developers during expansion phases and addressing liquidity mismatches when required. Investment decisions will depend on individual project requirements and expected returns.

The fund expects to undertake 15–20 transactions, while retaining flexibility to participate in larger or smaller deals. Its primary geographical focus will include Bengaluru, Chennai, Hyderabad, Pune, Mumbai and Kolkata, along with select tier-II cities offering suitable investment opportunities.

Residential real estate is expected to contribute significantly to the portfolio's value creation. The fund will also evaluate opportunities in retail, hospitality, industrial properties and warehousing based on their risk-return potential.

Kotak's previous real estate funds have generated internal rates of return of around 19%, according to the company. Kotak Investment Advisors manages assets worth approximately $4.5 billion and reports zero credit losses since 2009.

Also read: Sonipat Emerges as Tier 2 Urban Growth Leader

The planned fundraise comes amid increasing demand for organised institutional capital in India's real estate sector. Developers are seeking alternative financing sources to support land acquisitions, construction and project expansion. According to JLL, institutional investments in Indian real estate reached $4.4 billion in the first half of 2026, marking a 25% year-on-year increase. The period also recorded 54 transactions, the highest number in a half-year period.

Through its latest fund, Kotak aims to strengthen its presence in India's real estate financing market while providing developers with flexible capital across property segments and market cycles.