MUMBAI: Qatar Investment Authority (QIA), the sovereign wealth fund of the gas-rich Gulf emirate, is in talks to invest $200 million in residential property in India, a source with direct knowledge of the matter said.
QIA is holding “conversations” with Kotak Realty Fund, run by Kotak Mahindra Bank Ltd, which would manage the investments on behalf of the fund, said the source, who asked not to be named because the deal has not been finalised.
Kotak would also make a small investment and plans to focus on residential property developments in major cities across Asia’s third-largest economy for QIA, the source said. Kotak declined to comment. QIA did not respond to emails or telephone calls.
Sovereign wealth funds and other long-term investors are eyeing opportunities in Indian real estate, betting that property prices are bottoming out after slumping this year on the back of the slowest economic growth in a decade. The investments are a shot in the arm for India’s property developers, many of whom are burdened with expensive debt.