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Ask Property Fundreal estate private equity arm ASK GroupRaised over Rs 1,500 crore with the closing of its sixth fund, Real Estate Special Opportunities Fund IV, with co-investment from investors.
The fund will focus on property markets in the top five cities of the country and invest primarily in mid-income and affordable residential development projects.
The private equity firm is looking to deploy the fund in the established residential markets of Mumbai, Pune, NCR, Bengaluru and Chennai,
“As a private equity fund, we are delighted to announce the successful close of our latest real estate fund. We are excited to continue partnering with customer centric developers committed to on-time delivery of quality residential sustainable residences. Customer centric approach automatically ensures better risk adjusted returns.” Amit BhagatCEO & MD, Ask Property Fundtold ET.
According to him, more than 60% of the investors in the latest fund are repeat investors from their previous funds which include domestic investors, offshore entities and family offices and the average ticket size of these investments is around Rs 10 crore.
ASK Property Fund has an aggressive deployment plan for the new fund and based on the existing pipeline and discussions, it intends to deploy the entire Real Estate Special Opportunities Fund IV in the current financial year.
India’s mid-income and affordable housing has emerged as a major growth opportunity for realty developers and financiers, supported by increasing demand in this segment in the backdrop of rising income levels and pressure from the government.
It is projected that by the year 2030, more than 40% of the Indian population will live in urban India, as against 35% at present, which will create additional demand for affordable units with huge investment opportunities for private equity players.
To address the supply issue, funds such as ASK Property Fund have forayed into the affordable housing segment. The funds focus their investments on the development of affordable housing while providing liquidity and credit to trusted developers using asset management to hedge risk.
According to recent studies, India’s top seven cities will add 522 million sq ft of new residential space in 2021, with sales of 562 million sq ft in 2022. The inventory overhang is also expected to come down to 13 months by the end of 2022. 16-20% in total residential sales.
ASK Property Fund is its alternative property investment arm ASK Group Established to manage and advise real estate dedicated funds. The focus is on private equity investments in self-liquidating mid-income and affordable residential and commercial segments.
ASK Property Investment Advisors has raised over Rs 6,100 crore till date and its key investors include family offices, ultra high net worth individuals (UHNIs), high net worth individuals (HNIs) and institutions.
ASK Group manages assets of over $8.98 billion or Rs 73,600 crore as of end-March, across multiple asset classes and investors established in India, Dubai and Singapore.
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