ASK Investment Launches 500 cr Real Estate Fund

Published: March 12, 2009

At a time when property prices have been moving southwards and experts are predicting a tough period ahead, private equity firm ASK Investment Holdings has launched its Rs 500-crore real estate fund. ASK’s management thinks that the real estate advisory business will complement its existing wealth management business, apart from growth opportunities existing in the domestic property market.

“Equity and real estate are two critical asset classes of the wealth-creation process. We are closely observing the trends in the domestic real estate market and are convinced which has an important place in the long-term wealth creation process,” Sunil Rohokale, executive director, ASK, said. There are a set of issues that are affecting the flow of funds into the property market. Among them are tougher lending norms, an unfavorable primary market and a depressed global sentiment. Here, realty deals have not fructified and developers are finding it hard to command fancy valuations. A consequent price correction is now witnessing developers defaulting on financial commitments and project deadlines.

“ASK is providing a liquidity window to investors. This means that the portfolio manager, at the end of three years, will be able to provide a liquidity enabling facility, where the investor can choose to realize 10% of his capital contribution,” Mr Rohokale said. The fund is focusing on the top seven cities in the country, and is looking to invest mainly in the residential market with a focus on 200 fundamentally strong real estate developers. “ASK is keen on investing in projects that are already underway or about halfway. Our exit will be through sale of self liquidation of assets rather than a public offering,” added Mr Rohokale.

Source: Indian Realty News

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