ASK Real Estate Special Opportunities Portfolio 1, a realty-focused private equity fund, has invested Rs 50 crore in a company floated by Chennai’s Real Value Group. Real Value Group’s SPV is developing a residential project of 6.75 lakh sq. ft., spread across 4.32 acres at Kottivakaam in Chennai.
This is the fifth investment from the fund, promoted by the ASK group which is into wealth management, and raised in 2009. The infusion will be used for a residential project at Kottivakaam in Chennai, which will see erection of 6.75 lakh sq. ft. of space on a plot measuring 4.32 acre, a release issued by the ASK group stated. The project is within walking distance from Taramani Railway Station and in close vicinity of IT landmarks like TIDEL Park, Cognizant, Asendas IT Park, RMZ Millenia Business Park and SP Infocity. The venture can, therefore, cater to buyers in leading IT companies located in these IT parks, the release said.
Launched in 2009, ASK Real Estate Special Opportunities Portfolio is a fund of ASK Property Investment Advisors, a venture of the ASK group set up to manage and advise real estate dedicated funds. It invests in cities like Mumbai, Delhi-NCR, Bangalore, Chennai, Pune, Hyderabad and Kolkata. This is the fifth investment from the fund and has committed 80 per cent across Pune, Delhi-NCR, Chennai and Bangalore. The fund has previously invested Rs 255 crore and Rs 270 crore in real estate projects of Amit Enterprises Housing Ltd and Darode Jog Realties respectively.
Indian realty sector has been on a recovery path after seeing the asset price bubble burst in 2008 with credit squeeze and high interest rates. Although the revival was led by rising demand for residential housing projects, commercial realty has seen an uptick for the last six months. Recently, Red Fort Capital backed two residential projects in the Delhi-NCR region. Funding action is picking up in the real estate space: Noida-based realty firm Amrapali Group is raising Rs.80 crore from ICICI Prudential Asset Management Company, for a 22 acre residential project in Noida while Netherlands-based financial institution FMO is investing $55 million (Rs 250 crore) in Pune-based realty project of Kumar Urban Development Ltd (KUL), through CCDs.