ASK Property Investment Advisors to raise Rs 1,000 crore realty fund

ASK Property Investment Advisors to raise Rs 1,000 crore realty fund
ASK Property Investment Advisors to raise Rs 1,000 crore realty fund

ASK Property Investment Advisors, the real estate private equity arm of the ASK Group is looking to raise Rs 1,000 crore through its new real estate-focussed fund ASK Real Estate Special Opportunities Fund-IV.

The fund also has an additional green shoe option of Rs 1,500 crore and ASK PIA is looking to raise the fund through a combination of offshore and domestic investors.

“This fund’s strategy is a mirror image of our fully deployed previous fund. We will provide early, mid, and last mile funding for fully approved projects by customer-centric developers with an established delivery track-record. We intend to announce the initial close of the fund at Rs 750 crore by September,” said Amit Bhagat, CEO & MD, ASK PIA.

The private equity firm currently has a strong pipeline of over Rs 500 crore of investments pre-identified for deployment. It has also deployed over Rs 400 crores during the quarter ending March 2021.

The fund is in line with ASK’s focus on the affordable & mid segment residential and mix land use projects. It will focus on job growth corridors across the top 6 cities of India including the Mumbai Metropolitan Region (MMR), Delhi-National Capital Region (NCR), Bangalore, Chennai, Pune, and Hyderabad.

“The real estate sector has been facing a paucity of capital since the NBFC crisis in 2018 which has been heightened since last year, due to the ongoing pandemic. On the contrary, sales in the sector have been witnessing green-shoots of revival since the second half of 2021. We foresee a steady uptick in demand on the back of historically low home loan rates coupled with stamp duty incentives in states like Maharashtra and discounts offered by several developers,” said Sunil Rohokale, MD & CEO, ASK Group.

According to him, the proposed fund will leverage on the shortage of capital and rising demand to deliver superior risk adjusted returns. The housing demand has been predominantly towards completed and nearing completion inventory. Also, the sales have been driven by first time home buyers and end users seeking to upgrade to larger homes to accommodate the option of work from home.

The fund will identify projects of established developers and provide funding to ensure financial closure for seamless execution and timely completion.

ASK PIA, the alternate asset investment arm of the ASK Group, focusses on private equity investments in self-liquidating mid-income and affordable residential and commercial assets. It has raised around Rs 5,000 crore since 2009 from investors including family offices, ultra-high networth individuals (UHNI), high networth individuals (HNI) and Institutions.


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