India’s Prestige, Kotak, ADIA in deal to develop $240m projects

India’s Prestige Estates Projects announced a 20-billion-rupee ($240 million) deal with the Abu Dhabi Investment Authority (ADIA) and Kotak Alternate Investment Fund to develop residential projects, Reuters reported on Monday.

Development projects in Bengaluru, Mumbai, Goa, and the National Capital Region have a combined gross development value exceeding 180 billion rupees, according to the report.

The terms of the deal were not revealed, but India’s real estate sector has seen substantial foreign investment, with over $5.8 billion invested in 2023.

The residential sector is also expected to see strong investment due to rising disposable income and demand for spacious homes.

This deal may lead to more private investments in the sector. Last year, Embassy Office Parks raised 12.50 billion rupees from Bain Capital, and Valor Estate raised 9.20 billion rupees from investors including Morgan Stanley and BNP Paribas.

Prestige operates in 12 major Indian locations, with a portfolio consisting of 50 per cent residential and 42 per cent commercial projects. Prestige’s shares rose 8.3 per cent on Monday.