The Washington State Investment Board (WSIB) has agreed to invest INR 2.01 billion ($30 million; €29 million) in Kautilya Finance, an Indian investment platform owned by the Amsterdam-based real estate investment firm Aevitas Property Partners. PERE has learned from industry sources that the capital will be deployed in the residential projects being undertaken by the New Delhi-based developer DASNAC Holdings.
The investment with DASNAC is a structured debt transaction. The capital will be used to finance the construction of new and existing projects in the affordable and mid-income housing sector in Delhi and the national capital region. The transaction is expected to close before March 31.
WSIB has made a total allocation of $1.2 billion via three follow-on investments to Aevitas Property Partners that invests in real estate operating companies globally, but primarily in non-US markets. According to the minutes of WSIB board meetings seen by PERE, the pension plan first committed $250 million to Aevitas in 2012, followed by a $500 million investment in 2014, and a third investment totalling $500 million in April, 2016.
India is a key part of the investment blueprint of Aevitas along with the UK, western, central and eastern Europe and Morocco. Through Kautilya Finance, set up as a Securities and Exchange Board of India-registered foreign portfolio investor, the firm reportedly made an investment of INR 1.75 billion in developer Saha Groupe’s residential projects in Noida in July, 2016.
According to PERE data, the $112 billion pension plan, WSIB, currently has a 30 percent global allocation to alternative investments.