Abu Dhabi invests $200m in India real estate
Dubai, July 11, 2013
Abu Dhabi Investment Authority (ADIA) plans to invest about $200 million in Indian real estate, two sources said, underscoring a trend for large Gulf sovereign wealth funds to diversify away from traditional developed markets such as Europe.
ADIA, which manages the surpluses the Gulf emirate earns from oil exports, has appointed Kotak Realty Fund, run by Kotak Mahindra Bank, to invest the money, one of the sources familiar with the matter said.
Earlier this month, Oman's State General Reserve Fund and the Government of Singapore Investment Corp (GIC) and Temasek committed to invest $200 million in a real estate fund run by India's biggest mortgage lender, Housing Development Finance Corporation.
In May, Qatar paid $1.26 billion for a 5 percent stake in Indian telecoms firm Bharti Airtel Ltd, the world's fourth-biggest mobile phone company by customers.
India's finance minister P. Chidambaram visited the Gulf region in May for the second time in two months seeking investment in Asia's third-largest economy.
ADIA has investments of about $400-$500 million in India which includes an 11.22 percent stake in Infrastructure Leasing & Financial Services and a $50 million investment in Red Fort Capital, a real estate private equity fund.
Kotak's appointment comes a little over a year after ADIA hired an India-dedicated investment manager for real estate and infrastructure to look at direct investment opportunities in the country.
Both sources declined to be named as the information is not public yet. ADIA and Kotak declined to comment.
ADIA, whose assets range from Citigroup bonds to a stake in Britain's Gatwick airport, allocates between 5 to 10 percent of its portfolio to real estate and prefers to invest mainly through third-party fund managers or joint venture agreements, it said in its 2012 annual review.
The sovereign fund's real estate portfolio is widely believed to be skewed towards developed countries but it said in its review it is seeking more investments in emerging markets.
ADIA has undisclosed assets that analysts estimate at between $400-$600 billion - equivalent to about 1 percent of the value of the world's major stock exchanges.
Kotak Realty Fund has $811 million of assets under management and has invested in more than 32 real estate projects in India since it was set up in 2005, according to its website. – Reuters
More Construction & Real Estate Stories
- Emaar unveils luxury homes in ‘BLVD Crescent’
- Emaar's retail spin-off plan 'won't affect rating': S&P
- Alargan HQ becomes Kuwait's first Leed project
- Tecom parks to become carbon-free zones
- New Tekla software accelerates information flow
- Damac unveils first Trump Estates in ME
- GFH in key London property placement
- Green Valley unveils new UAE, Turkey projects
- Jotun colour collection tracks new trends
- RAK Properties to distribute $27.2m profit
- Top construction firms head to Bahrain
- Investors pull out of $65m Bahrain project
- Projects stalled in Bahrain due to 'mismanagement'
- Emaar rules out plans for new tall tower
- Barwa net profit surges 27.3pc
- RAK Properties adds new villas to Flamingo project
- Saudi launches housing scheme to ease shortage
- R&M wins Oman residential project contract
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts