ASK Property Investment Advisors (ASKPIA) has received approval from the International Financial Services Centre Authority (IFSCA) to establish and manage its first real estate focused fund of funds as an Alternative Investment Fund (AIF), category III, in Gujarat's GIFT City.
The authority has also given ASKPIA permission to open a branch office in Gandhinagar's GIFT City. This fund will serve as a conduit for international funds to invest in funds that will then invest in companies or projects. Global investors will be able to invest in India directly through GIFT City, rather than going through Singapore, Cyprus, Mauritius, and other countries. The first fund to receive this approval is ASK Real Estate Fund II. The IFSC has made the investment process for investment flows from NRIs and international investors into domestic markets more efficient and simple. Tapan Ray, MD and Group CEO of GIFT City told the media that NRIs, HNIs, and global funds will be able to invest in AIFs at the GIFT IFSC thanks to funding houses like ASK. Setting up offices at GIFT IFSC and attracting offshore funds for investments in India has become a natural choice for large fund houses. As a result of this development, Indian and international institutions are rushing to establish similar funds at the GIFT IFSC. The authority has also given ASKPIA permission to open a branch office in Gandhinagar's GIFT City. The government's establishment of the IFSC has made the investment process for NRIs and international investors into domestic markets more efficient and simple. Despite the pandemic, private equity investments in the real estate sector have increased in recent years, particularly in the last year. The increase is primarily due to foreign funds investing in India, as the real estate recovery is now fully visible and long-term structural changes are beginning to bear fruit. Foreign investors are drawn to the sector because of the numerous opportunities available in the residential, mixed-use, commercial, retail, industrial, and other segments. Image Source
