SK Property Investment Advisors has received approval from International Financial Services Centre Authority (IFSCA) to set up a branch office in GIFT City, Gandhinagar. In addition, ASK Real Estate Fund -2, sponsored by ASK Property Investment Advisors (ASKPIA), has obtained clearance for a real estate focused fund of funds as category III Alternative Investment Fund (AIF), according to a statement issued by GIFT City on Thursday.
Private equity investments into real estate have surged over the last year. The rise is mostly driven by foreign funds investing in India as the real estate recovery is now fully visible and the structural long-term changes are fructifying. The sector is very attractive to foreign investors due to abundant opportunities across residential, mixed-use, commercial, retail, industrial and other segments.
The establishment of the IFSC has made the investment process more efficient and simpler for investment flows from NRI's and global investors into domestic markets. ''We foresee GIFT city emerging as the gateway for inbound investments and becoming the preferred destination for setting up AIFs,'' the statement noted.
Tapan Ray, MD and Group CEO of GIFT City, said that fund houses like ASK will open doors for various NRIs, HNIs and global funds to invest in AIFs at GIFT IFSC. It has become a natural choice for large fund houses to set up offices at GIFT IFSC and to attract offshore funds for investments in India.
''With historically low home loan rates, we expect the real estate sector to attract more capital through this route and this branch is a step in preparing for the next leg of growth for our real estate fund business,'' Amit Bhagat, CEO and MD, ASKPIA, said.
Sunil Rohokale, MD and CEO, ASK Group, said, ''The GIFT city branch is an endeavour to further expand our international business as we see increased demand for India focussed investments amongst global investors. The GIFT city fund of funds is an opportunity for global investors to participate in the turnaround journey of India's real estate sector”.
GIFT City is India's first operational smart city and International Financial Services Centre (IFSC).
(With inputs from PTI)
