Kotak Realty Fund picked up 10% stake in Mumbai-based developer Sunteck Realty for Rs 140 crore. Kotak Realty has routed the investment in Sunteck through investment fund Kotak Alternate Opportunities India Fund.
This would be one of the first investments from the new $400 million realty fund recently raised from domestic investors by Kotak Realty. Sunteck Realty said in a statement that the developer would utilise funds to expand its real estate developments within Mumbai, and diversify into other geographical locations.
The investment will be done through a combination of equity and convertible preference shares, which on conversion will result in a 10% stake in the company, on a fully-diluted basis, said the statement . Sunteck Realty will develop residential and commercial projects in Mumbai, Goa, Pune, Nagpur, Chennai and other key tier-II cities.