Kotak AMC launches India’s First International REIT Fund of Funds

Mumbai, Dec 7 (UNI) Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) on Monday announced the launch of Kotak International REIT Fund of Funds, India’s first diversified REIT Mutual Fund.

Kotak International REIT Fund of Funds is an open-ended mutual fund scheme that will invest in units of SMAM Asia REIT Sub Trust Fund. This mutual fund scheme will have a diversified investment portfolio comprising of listed REITs which will invest in real estate projects like residential, office, data centres, warehousing, retail and hospitality.

The New Fund Offer (NFO) opens for subscription on December 7, 2020 and closes on the December 21 , 2020. Kotak International REIT Fund of Funds offers an opportunity for domestic investors to invest and benefit from growth in real estate market without actually owning the entire asset. Real Estate Investment Trusts (REIT) own, operate, or finance income-generating real estate.

Nilesh Shah, MD & CEO, Kotak Mahindra Asset Management Company said, “While REIT market has seen limited growth in India, the Asia Pacific region provides a phenomenal opportunity for local investors to benefit from growth across sectors of real estate. These regions are expected to see a massive demand in real estate backed by growth in consumer spending, urbanization and becoming the epicentre of global trade.”

The SMAM Asia REIT Sub Trust Fund is one of the largest Asia Pacific (Ex Japan) REIT funds investing in listed REITs in the Asia Pacific region. It is managed by Sumitomo Mitsui DS Asset Management Company Limited, which has a significant portfolio of listed Real Estate Investment Trusts in Singapore, Australia and Hong Kong.

Katsunosuke Ozawa, Councilor, Sumitomo Mitsui DS Asset Management Co. Ltd, Asia REIT Sub Trust Fund, said, “We are delighted to be part of Kotak’s international REIT Fund. The new fund will help India’s long-term investors to invest in diversified portfolio of real estate projects across Asia Pacific region through listed REITs we invest in. With strong demand for office spaces, residential, warehousing, retail and hospitality in Asia Pacific regions, investment in our REIT fund offers an opportunity to Indian investors to grow their wealth over a period of time.”

Investment in a REIT FoF gives an opportunity to investors to create a more balanced portfolio with asset allocation beyond the traditional equity and debt instruments.


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