ASK Group and Shriram Properties Invest in Bangalore

on Sep 18, 2012
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ASK Property Investment Advisors, the real estate private equity arm of the ASK Group, has made an Rs 100 crore (£11.2 million) investment in Bangalore’s Shriram Properties residential project.

**The Deal**
The real estate developer Shriram Properties, funded by ASK, bought prime land parcels in Bangalore’s Sarjapur and Hyderabad’s Shamirpur from Citi Group. According to a source with direct knowledge of the transaction, the land was sold at a discounted price to Shriram Properties because it was mortgaged with the borrower continuously failing to service his loan.

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**he Development**
The purchased land is to be developed jointly by ASK and Shriram properties (the real estate unit, which is part of the £5.5 billion conglomerate Shriram Group). The 16-acre parcel is strategically located off Sarjapur Road and will target middle-income households offering them a mix between apartments and villas. The properties will be priced between Rs 5,000-7, 000 (£57 – £80) per square foot. It is expected that the project will generate some 80 million pounds in revenue in the next three to four years.

**ASK Group**
ASK has already made three large investments in India – two in Mumbai with Godrej Properties and Rajesh Builders and one in Bangalore with Mantri Developers. These investments are part of the £114 million raised via the ASK Real Estate Special Opportunities Fund in 2012. The company also manages another fund of some £150 million and is on the way to raising its first offshore real estate fund of around £140 million. ASK traditionally makes investments per quarter but this year it is looking to undertake five to six investments within a year’s time and utilise nearly 80 percent of its second domestic fund.

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