New Delhi, Sept. 14 -- Smartworld Developers, promoted by the Pankaj Bansal-led Bansal family and an affiliate of M3M India, has secured financing from Kotak Realty Fund, the real estate arm of Kotak Alternate Asset Managers Ltd, the company said in a statement.
Kotak Realty Fund will invest about Rs 800 crore (around $84 million) in Smartworld Sky Arc and Trump Residences, in Gurugram, together representing a gross development value exceeding Rs 8,200 crore (around $859 million).
The statement said that the partnership has been planned as a long-term institutional relationship, combining Smartworld's development platform and luxury residential pipeline with Kotak Realty Fund's institutional capital and real-estate investment expertise.
Structural transformation underway
"India's luxury residential market is undergoing a structural transformation, with institutional capital increasingly backing developers that combine product quality, execution and governance. Kotak Realty Fund's partnership with Smartworld is a strong endorsement of the platform we have built," said Pratik Tibrewala, senior vice president and group head - corporate finance and banking, M3M India Group.
In a recent interaction with VCCircle, Tibrewala had said that the company was in dialogue with a few alternative investment funds (AIFs) and global investment firms to raise a $200-250 million (around Rs 1,908-2,385 crore) opportunistic line of credit to fund future land acquisitions and special situations.
He had also said that the funding may be raised over this financial year.
Previously, M3M raised funding from alternative investors such as PAG and Oaktree Capital. In 2024, PAG, one of the largest alternative investment managers in Asia, invested Rs 400 crore in bonds of a M3M India group entity to help it refinance existing debt and acquire land. In 2020, the developer raised Rs 570 crore from American alternative investment manager Oaktree through non convertible debentures.
"This partnership brings together institutional capital, disciplined execution and a shared long-term vision. Phase I is only the beginning," said Yateesh Wahaal, group whole-time director, M3M India Group.
Institutional capital in premium housing
Kotak Realty Fund has invested across Indian real estate cycles for more than two decades. Its latest fund closed at nearly $1 billion, anchored by a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) alongside the National Pension Service of Korea.
Smartworld has built a differentiated position in premium and branded residences with developments associated with global names including The Trump Organization and Elie Saab. Its wider Bansal Family platform has also collaborated with Jacob & Co.
As per the statement, Smartworld Sky Arc has already recorded approximately 94 per cent sell-through across 2.6 million sq. ft. of saleable area.
Smartworld Developers develops premium, luxury and branded residential communities across Delhi NCR. Its portfolio includes Smartworld One DXP, Smartworld The Edition, Smartworld Sky Arc, Trump Residences, Smartworld Nature's Court and Smartworld Residences by Elie Saab.
Published by HT Digital Content Services with permission from VC Circle.