Kotak India Real Estate Fund I sells residential plot to Mexican firm Homex

The Economic Times reported Thursday that Homex, a Mexican pre-fabricated affordable housing firm invested Rs 130 crore in the purchase of a residential plot from Kotak India Real Estate Fund I. The 20-acre residential plot is situated in Old Mahabalipuram Road (OMR) in Chennai.  The buying price reflects a purchase price of Rs.6.5 crore per acre.

Before the sell, Kotak Realty Funds Group (KRFG) had planned to engage a developer to develop a residential complex and had acquired the land from Pentamedia Graphics in 2007. DTZ was the advisor to the transaction.

The Mexican firm, Homex is a vertically-integrated home development company focused on entry-level and middle-income affordable housing segments. It is also the largest home builder in Mexico, based on the number of homes sold and has so far delivered around 270,000 homes. Its entry-level, affordable housing ranges between 452 sq ft and 818 sq ft and its middle-income apartments are 818-1,851 sq ft.

Kotak Realty Funds Group has been exiting from its investments in several markets. It has fully exited from investments in Phoenix Mills and NDR Warehousing Pvt Ltd in Mumbai and is planning to exit from Peepal Tree Properties, a green field IT park building in Gurgaon, Mumbai and Green Boulevard, a project in Noida IT Park.

Rs.458 Cr Kotak India Real Estate Fund I (KIREF-I ) had purchased the 7,85,000-sq ft green field IT park building in Mumbai, developed by K Raheja Constructions in mid 2006, for about 200 crore. The fund had invested about Rs.38 crore with Noida-based developer-3C Group to develop Green Boulevard, a 700,000 sq ft IT/ITES space project, said the report.

KRFG manages three funds, Rs.458 Cr Kotak India Real Estate Fund I, which has been fully invested; a Rs.1,578-crore Kotak Alternate Opportunities India Fund, and a $281 million offshore fund.

It had made project-level investments in Golf Community in Bangalore, mid-income housing in Hyderabad, a Chennai-based residential township, while it has enterprise level investments in Lemon Tree Hotels, Pride Hotels, Sobha Developers, Lalith Gangadhar Constructions and Sunteck Realty.

Kotak Mahindra Realty Fund is the pioneer in the field of real estate equity funds in India. Kotak Mahindra Realty Fund was promoted by the Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary of Kotak Mahindra Bank Limited (KMBL), and became functional in May, 2005.

6 Jan 2011.