India's Kotak Investment Advisors raises $500 million for new real estate fund

BENGALURU (Reuters) - India's Kotak Mahindra Group's asset management arm said on Tuesday it secured a $500 million investment from a unit of the UAE-based sovereign wealth fund Abu Dhabi Investment Authority (ADIA) for its $1 billion real estate fund.

Kotak Investment Advisors Ltd (KIAL) said it has so far raised, managed or advised over $3.3 billion under its real estate fund series.

"The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters," said Mohamed AlQubaisi, executive director of ADIA's real estate department.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)