India’s ASK Property Investment Advisors aims to raise a 10-billion-rupee ($219 million) fund by December in a bet on the long-term case for property in Asia’s third-largest economy. The real estate-focused private equity firm, which manages assets worth more than 9 billion rupees, is in talks with developers in five of India’s largest cities to deploy the funds, Amit Bhagat, chief executive officer and managing director, said.
“In the downturn, if you invest, chances are there for superior returns,” Bhagat told Reuters. Slowing economic growth is mounting pressure on property prices in India, which are expected to “correct partly” in locations such as Bangalore and Chennai, Bhagat said. “We will invest in cities and suburbs, not extended suburbs. The fund will focus on residential projects in Mumbai, Pune, Chennai, Bangalore and the Delhi area, he said. ASK has already received commitments for more than half of the 10 billion rupees it is plans to raise, he said. The first fund of 3.4 billion rupees, raised in 2009, has been fully invested, Bhagat said.
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