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 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.
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 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.