Money & Banking

Kotak MF launches REIT Funds of Funds scheme

Our Bureau Mumbai | Updated on December 07, 2020

Kotak Mahindra Asset Management Company has launched of Kotak International REIT Fund of Funds, which is India’s first diversified Real Estate Investment Trusts (REIT) Mutual Fund. The open-ended scheme will invest in units of SMAM Asia REIT Sub Trust Fund. This MF scheme will have a diversified investment portfolio comprising of listed REITs which will invest in real estate projects such as residential, office, data centres, warehousing, retail and hospitality.

The New Fund Offer will be open for subscription till December 21.

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. REIT owns, operates, or finances income-generating real estate.

Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, said that 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, urbanisation 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, 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 Asia REIT Sub Trust Fund, said that with a strong demand for office spaces, residential, warehousing, retail and hospitality in Asia Pacific regions, investment in REIT fund offers an opportunity to Indian investors to grow their wealth over a period of time.

Published on December 07, 2020

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