ASK Property plans Rs. 2,000 cr realty projects

The private equity arm of financial services firm ASK Group, ASK Property Investment Advisors, is currently generating Rs. 2,000 crore special situations fund from domestic and foreign investors to invest in residential projects across the country. The ASK Real Estate Special Situations Fund, which falls under Category II alternative investment fund (AIF), will raise about Rs. 1,000 crore each from domestic and offshore investors and offer capital in the form of preferred equity to developers. In view of the prevailing slump in the realty sector, the fund will play a critical role in reinvigorating projects that have seen slow sales or do not have the financial bandwidth to complete construction on time without finance support. The new fund will provide additional working capital and refinance debt to ensure projects are completed on time. On this score, ASK will offer preferred equity, where the capital will be securitized like debt but repayment will have the flexibility of equity payment without the liability of quarterly payments, Chief Executive and Managing Director, Amit Bhagat said, revealing that the fund will mainly invest in mid-segment residential projects across Mumbai, NCR, Pune, Chennai, Bengaluru, and Hyderabad.