Mumbai, March 7: Kotak India Real Estate Fund I today said it had sold Peepul Tree Properties Private Ltd, a wholly owned undertaking, to Tata Realty Initiatives Fund 1 for Rs 525 crore ($117-million), making around 450 per cent gain from its investment.

Peepul Tree Properties owns an IT park in the Mumbai suburb of Goregaon, which has been 96 per cent leased to big-name tenants such as Accenture, HP, BNP, Tata AIG, Integron and Prana Studios.

Kotak India Real Estate Fund I had invested Rs 95 crore in Peepul Tree and gained over Rs 400 crore from the exit, a press release stated.

The exit has many firsts to its credit.

Besides being the largest real estate exit in the Indian market by a fund, Peepul Tree Properties is the first office property to be divested by a property fund in India and one of the first foreign direct investments in an income producing asset, the release said.

Kotak India Real Estate Fund I is the inaugural Rs 457- crore domestic fund ($100 million) of Kotak Realty Fund.

With this sale, Kotak Realty Fund will also become the first property fund in India to return the entire corpus of the fund back to its investors.

The fund has other notable investments such as Lemon Tree Hotels, Pride Hotels, 3C Green Boulevard and Clover Golf community.

Kotak Realty Fund’s director, V. Hari Krishna, said, “This has been a highly successful investment for the fund, notably it was a control investment, which we have been able to lease, operate and exit profitably.”