, the real estate private equity arm of ASK Group, has invested Rs 77 crore in Bangalore-based real estate developer Sushil Mantri’s semi-luxury residential project from its second fund, ASK Real Estate Special Opportunities Fund II.
Sunil Rohakale, CEO and MD, ASK Investment Holdings, said, “We will be launching the project soon. It is located at Lalbagh road. The quick absorption in city-centric projects with reputed brands will yield higher returns to the fund.”
Sushil Mantri, chairman of Mantri Developers Pvt Ltd, said, “This is one of the few developments being undertaken in the heart of the city. This second partnership with ASK group would enable us to execute such projects.”
The realty fund has come in during the land acquisition stage and expects internal rate of return (IRR) in the range of 20 per cent. The project will have nearly 200-300 apartments up for sale and it expects to garner revenues of Rs 450 crore.
The investment has been made from the domestic fund, which was closed in July this year. The fund will also make another investment of nearly $18million (Rs 100 crore) another Bangalore-based residential property. Rohokale declined to give details on the same.
The real estate investment firm’s second fund is a development fund, focused towards residential property development in key cities like Mumbai, Pune, Bangalore, Chennai and Delhi.
The fund will invest only in mid-size development projects spanning 5-15 acres in city central or suburbs. It is also targeting projects with a price tag of Rs 4,000-6,000 per sq. ft. in all cities except Mumbai, where the ticket size would be higher, around Rs 8,000-12,000 per sq. ft.
ASK PIA is also planning to raise its first offshore fund with a corpus of $250-300 million, for which it will begin its road shows soon.
(Edited by Prem Udayabhanu)