Kotak Mahindra AMC Ltd. has launched India’s first diversified REIT (Real Estate Investment Trust) Mutual Fund, Kotak International REIT Fund of Funds.
The REIT mutual fund scheme is an open-ended mutual fund scheme that will invest in the units of SMAM Asia REIT Sub Trust Fund. It will have a diversified investment portfolio that comprises of listed REITs that will be investing in real estate projects like residential and corporate spaces, data centers, warehousing, retail and hospitality.
The New Fund Offering (NFO) is open for subscription and will close on December 21. The mutual funds company’s new offering provides an opportunity for domestic investors to diversify their portfolios and invest in the growing real estate market.
“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,” said Nilesh Shah, MD & CEO, Kotak Mahindra AMC.
The SMAM Asia REIT Sub Trust Fund is managed by Sumitomo Mitsui DS AMC Ltd. and it is one of the largest Asia Pacific REIT funds which invest in listed REITs in the Asia Pacific region. It has a significant portfolio of listed REITs in Singapore, Australia and Hong Kong.