Asipac initiative tries new strategy in India

The realty consultancy firm is undertaking a series of small funds which will help SPVs in India get to a point where they can attract the attention of large private equity funds.

Bangalore-based real estate marketing and consultancy firm Asipac Projects has launched a real estate fund to take small stakes in real estate development projects across India.

The firm is first raising money from Indian institutional investors for RS500 million ($12.4 million, €7.9 million), according to company chairman Amit Bagaria. The fund is the first in a series of small funds that will seek to partner with special purpose vehicles.

Bagaria said the first fund should be in place in six months, picking up stakes of up to three percent in specific projects. The fund is the first in a series of planned similar vehicles. The first fund is being raised from domestic and non-resident high net worth individuals and institutions.

Bagaria said there were many builders and developers with huge land banks which do not have access to big private equity funds. He envisions the fund helping these small developers with initial hurdles like obtaining clearances, after which time they will be able to attract investment from larger private equity funds to complete the projects.

The company is also planning to launch two new strategic business units in the coming months, an investment advisory services group and a construction management consultancy division. As a consultancy, Asipac Projects represents about 18 real estate firms.