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ASK Group is to raise $200 million (about Rs 1,200 crore) in its maiden offshore fund that would be invested in residential properties across the top five cities in the country. The group is expecting to announce the initial close by September and the final in another 9-12 months.
Private equity firm and group company ASK Property Investment Advisors, would be the advisors for the fund-raising plans, while the group would rope in a Singapore entity as manager for the issue.
The ASK Group is a financial services group with a presence in portfolio management services, private equity, wealth advisory, money management and real estate funds.
“We feel that if we have to attract substantial capital, we have to do it through the offshore route only. Because long-term money is available only with offshore institutions such as pension funds and insurance,” ASK Property Investment Advisors Chief Executive Officer and Managing Director Amit Bhagat told Business Line in an interaction.
The fund would be raised through a separate offshore entity in Singapore and not by any of its Indian companies. The amount would be raised from ultra high networth individuals, family offices and institutions.
The company, which stays put in every investment for 4-5 years, would be investing in mid-income residential properties across five cities. These cities include Mumbai, Pune, Bangalore and the National Capital Region (NCR).
The group had raised Rs 326 crore in its first fund, which was fully invested, and another Rs 1,000 crore through its second fund, of which about 50 per cent has been invested. The investments were made across 11 real estate projects in five cities.
ASK Group will invest 20 per cent of the remaining Rs 500 crore of the second fund in the next three months, and the balance in about six months “after that”, Bhagat said.
On July 9, ASK Property Investment Advisors, the private equity arm of ASK Group, invested Rs 147 crore in a residential project of ATS Group in Gurgaon.
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