India: Kotak Realty Fund exits investment in Sunteck project

Image from the Kotak Realty Fund portal

Real estate firm Sunteck Realty Ltd has provided an exit worth Rs.270 crore to private equity firm Kotak Realty Fund from its investment in a mixed-use development project at Goregoan, a suburban in Mumbai.

In 2012, the PE firm invested around Rs.150 crore during the acquisition of 16 acres of land for the project.

In less than four years, Sunteck Realty managed to provide Kotak exit at an internal rate of return of approximately 22%, the company said in a statement

“We have grown with a good mix of debt and equity in the past which has helped us to keep our debt levels low and optimize cost of funding for growth. We have been able to monetize our assets faster and give exits to our partners with excess cash flows, thus generating attractive returns on investment for ourselves and our partner,” said Kamal Khetan, chairman and managing director, Sunteck Realty.

The 23-acre luxury township is a mixed-use development spread across 6 million sq.ft. that comprises a residential complex, commercial space, retail outlets and entertainment zones.

“We have had a longstanding and successful relationship with Sunteck and we are happy to get an exit for our investors in this challenging environment. We could participate at an early stage in this city centric project with a good brand and could exit in a timely manner with good returns,” said S. Sriniwasan, chief executive officer, Kotak Realty Fund.

Shares of Sunteck Realty closed at Rs.217.70, down Rs.10.95 or 4.79% from previous close.

Also read:

India: Realty firm Lavasa fails to follow on IPO plans, lets approval lapse a second time

India: Kotak Group, Canada Pension board to launch $600m fund to buy stressed assets

I-banks Axis Capital, Edelweiss & Kotak Mahindra Capital top gainers in India’s IPO boom

This article was first published on