ADIA backs Indian developer in $240m deal

Abu Dhabi Investment Authority, the UAE’s largest sovereign wealth fund, and India’s Kotak Alternative Investment Fund will support Indian developer Prestige Group in building residential projects across four Indian cities.

The deal is valued at 20 billion rupees ($240 million), Prestige Group said in a statement to the Bombay Stock Exchange on Monday.

The projects will be built in Bengaluru, Mumbai, Goa and the National Capital Region, with a combined gross development value of more than 180 billion rupees, the statement said.

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Prestige Group CEO Venkat K Narayana said the deal would help accelerate growth thanks to rising demand and consolidation in the Indian residential sector. 

Last month Abu Dhabi Investment Authority (ADIA) said it planned to pump additional funding into Cheyne Capital’s European real estate debt fund, increasing the total investment to £650 million ($832 million).

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India accounted for more than half of all the investment deals made by Middle Eastern funds in Asia since 2020, dwarfing China and Southeast Asia. It represented 58 percent of the capital invested.

“There is a really diverse opportunity across the asset classes in India compared to China,” Jeff Schlapinski, managing director of research at GPCA, told AGBI.

ADIA has already acquired shares in the Indian budget carrier SpiceJet.

In February another Abu Dhabi sovereign wealth fund, Mubadala, signed a $1 billion deal with Goldman Sachs to invest in private credit opportunities in Asia, with a focus on India.