ASK Property Investment Advisors looks to raise Rs 2,500 crore for new realty fund

By: |
July 14, 2021 1:20 AM

The fund is in line with ASK’s focus on the affordable and mid segment residential and mix land use projects in top six cities of India — MMR, Delhi-NCR, Bengaluru, Chennai, Pune, and Hyderabad. ASK PIA is looking to the raise funds from a mix of offshore and domestic investors.

Our fund will leverage on the shortage of capital and rising demand to deliver superior risk adjusted returns,” he said.Our fund will leverage on the shortage of capital and rising demand to deliver superior risk adjusted returns,” he said.

ASK Property Investment Advisors (ASK PIA), the real estate private equity arm of the ASK Group, is planning to raise Rs 1,000 crore and an additional Rs 1,500 crore through the green shoe option for a new real estate focussed fund called ‘ASK Real Estate Special Opportunities Fund – IV’.

The fund is in line with ASK’s focus on the affordable and mid segment residential and mix land use projects in top six cities of India — MMR, Delhi-NCR, Bengaluru, Chennai, Pune, and Hyderabad. ASK PIA is looking to the raise funds from a mix of offshore and domestic investors.

Commenting on the fund raise, Amit Bhagat, chief executive officer and managing director, ASK PIA, said the fund 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,” he said.

ASK currently has a pipeline of over Rs 500 crore of investments pre-identified for deployment. The fund deployed over Rs 400 crore during the quarter ended March 2021. According to Sunil Rohokale, MD & CEO, ASK Group, the sector has been witnessing green-shoots of revival since July 2020 and there is expected to be 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.

“Demand has been predominantly towards completed and nearing completion inventory. Sales have been driven by first time home buyers and end users seeking to upgrade to larger homes to accommodate ‘working from home’. Our fund will leverage on the shortage of capital and rising demand to deliver superior risk adjusted returns,” he said.

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