ASK Property, the real-estate private equity arm of ASK Group, will invest Rs 500 crore in real estate projects over the next 12 months. The investments will be made from their Rs 1,000 crore, second domestic real estate fund ASK Real Estate Special Opportunities Fund raised in 2012, said a top company official.
Sunil Rohokale, CEO and MD, ASK Investment Holdings, said, "We will be investing in 4-5 within a year from now. The ideal size of the transactions will be between Rs 100-150 crore each depending on the project."
The real estate investment firm has, in the last four years since inception, raised two domestic real estate funds with an overall corpus of Rs 1,326 crore (Rs 326 crore + Rs 1,000 crore). The company has already place 50% of the overall corpus in eight investments across cities like Delhi, Mumbai, Pune and Chennai.
Entering the Bangalore real estate market, with their ninth investment, it has picked up undisclosed stake in a residential project developed by Sushil Mantri promoted Mantri Developers. While ASK Property has committed Rs 100 crore for the project, it has already deployed Rs 77 crore in the special purpose vehicle (SPV) developing the project. The overall cost of this affordable luxury residential project located in the heart of Bangalore is pegged at around Rs 450 crore.
Sunil Rohokale, CEO and MD, ASK Investment Holdings, said, "We will be investing in 4-5 within a year from now. The ideal size of the transactions will be between Rs 100-150 crore each depending on the project."
The real estate investment firm has, in the last four years since inception, raised two domestic real estate funds with an overall corpus of Rs 1,326 crore (Rs 326 crore + Rs 1,000 crore). The company has already place 50% of the overall corpus in eight investments across cities like Delhi, Mumbai, Pune and Chennai.
Entering the Bangalore real estate market, with their ninth investment, it has picked up undisclosed stake in a residential project developed by Sushil Mantri promoted Mantri Developers. While ASK Property has committed Rs 100 crore for the project, it has already deployed Rs 77 crore in the special purpose vehicle (SPV) developing the project. The overall cost of this affordable luxury residential project located in the heart of Bangalore is pegged at around Rs 450 crore.
Amit Bhagat, CEO and MD, ASK Property Investment Advisors (ASKPIA), said, investment in Mantri's residential development is their first in the Bangalore real estate market. "Another deal is in the advanced stages of finalisation and we should be closing the transaction within a fortnight or so," Bhagat said adding that the investment firm typically picks up 26%-65% stake for its equity in the real estate projects.
To launch $200 million maiden offshore real estate fund in October '12
In another development, ASKPIA is launching its first offshore fund with a corpus of $200 million. An entity in Singapore has already been established for this purpose and the investment firm will hit the road for fund raise starting October 2012.
Rohokale said that an offshore fund vehicle has been set-up and approval from Monetary Authority of Singapore (MAS) has been obtained. "We are expecting to start the fund raise next month. The target is to achieve the first close before March 2013 and do a final close within the same calendar year," he said.
Christened ASK Capital Management Pte Ltd, Singapore, the offshore fund will have a 6 year tenure to be extended by two terms of one year each. The investment strategy will focus on project level mid-segment residential developments in the top 5 Indian cities. The money will be raised from family office, ultra high networth individuals (HNIs), institutions, sovereign funds and endowments. "The gross return (internal rate of returns - IRR) expectations from this fund is over 20%," Bhagat said.
Despite unfavourable fund rasing environment, ASKPIA is confident about their plans to raise $200 million on the back of strong performance of their investee companies from the domestic fund portfolio.
"Our investments are in marquee developments by realtors like Godrej Properties, Omkar Realtors, Rajesh Builders and Mantri Developers to name a few. One of the major factors that works to our advantage is that we have already returned 40% of our first fund to our investors at a significantly high IRRs. So we have a strong track record to demonstrate to our offshore investors," said Rohokale.
Rohokale said that an offshore fund vehicle has been set-up and approval from Monetary Authority of Singapore (MAS) has been obtained. "We are expecting to start the fund raise next month. The target is to achieve the first close before March 2013 and do a final close within the same calendar year," he said.
Christened ASK Capital Management Pte Ltd, Singapore, the offshore fund will have a 6 year tenure to be extended by two terms of one year each. The investment strategy will focus on project level mid-segment residential developments in the top 5 Indian cities. The money will be raised from family office, ultra high networth individuals (HNIs), institutions, sovereign funds and endowments. "The gross return (internal rate of returns - IRR) expectations from this fund is over 20%," Bhagat said.
Despite unfavourable fund rasing environment, ASKPIA is confident about their plans to raise $200 million on the back of strong performance of their investee companies from the domestic fund portfolio.
"Our investments are in marquee developments by realtors like Godrej Properties, Omkar Realtors, Rajesh Builders and Mantri Developers to name a few. One of the major factors that works to our advantage is that we have already returned 40% of our first fund to our investors at a significantly high IRRs. So we have a strong track record to demonstrate to our offshore investors," said Rohokale.
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