InvestorQ : Can you tell me about the REIT Fund of Funds launched by Kotak AMC?
Lavanya Subramanian made post

Can you tell me about the REIT Fund of Funds launched by Kotak AMC?

Anamika Sodhani answered.
3 years ago

In a first of its kind of unique offering for investors, now there is a REIT available in the form of a Fund of Funds or FOF. Launched by Kotak Mahindra AMC, the newly launched Kotak International REIT FOF with be the first of its kind offering in Indian markets.

The FOF will have a diversified portfolio of listed REITs which would be effectively investing in a cross section of realty projects in the residential, commercial, hospitality and warehousing segments. The NFO or the new fund offering for this FOF opened on 07 December and is currently open for subscription till December 21.

The Indian REIT market is just about taking off. The REITs were permitted by the SEBI in the year 2014. However, REITs were stuck due to clarifications on the tax and pass-through front which only came in 2018. Subsequently, the first REIT fund was launched by Embassy REIT in 2019 followed by Mindspace in 2020. Both have been successful issues.

The Kotak REIT FOF will predominantly invest in the Asia Pacific market which has traditionally been a high-growth market for the REITs. The KOTAK REIT fund will invest in the SMAM Asia REIT Sub Trust Fund. The APAC region is likely to be the fastest in terms of growth in realty and that is the franchise that the fund aims to capture.