ASK Property Investment Advisors raises Rs 610 cr in initial closing of sixth property fund

ASK Property Investment Advisors, the alternative asset investment arm of ASK Group, has raised over $80 million or Rs 610 crore from the initial closing of its sixth property fund. The funds will be invested in the residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru and Chennai.

The company is looking to raise a total of Rs 2,000 crore through this real estate fund (RESOF IV).

“Domestic investors represent 50% of the real estate fund raised, while foreign investors represent the remaining 50%. We are targeting a fund size of Rs 2,000 crore. We have finalized some investments and are ready for an accelerated rollout given a very healthy pipeline and structurally resilient residential segment,” said Amit Bhagat, CEO and Managing Director of ASK Property Investment Advisors.

In recent years, private equity investments in commercial, industrial, residential and data revenue centers have increased significantly. The increase is mainly due to foreign capital inflows into India.

“The rapid rebound, as indicated by a significant increase in sales velocity after the COVID period, has been very encouraging. We believe that the residential market is already on a growth trajectory in 2022 and should follow the same trend in the years to come,” said Sunil Rohokale, Managing Director and CEO of ASK Group.

According to him, the selection of the right developers, relevant micro-markets and entry at the right price have been the fund’s strengths. Projects in the fund’s portfolio have shown strong performance and recorded more than 70% annual growth in sales value in 2021-22.

“Average prices have increased by more than 10% and this should continue given the increase in purchasing power in the segment,” added Rohokale.

Rising end-user demand combined with falling inventory on one side and job creation combined with revenue growth in the service industry, information technology, financial services and related sectors are drivers of sustained demand in the residential sector.

ASK Property Investment Advisors focuses 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, very high level individuals (UHNI), high income individuals (HNI) and institutions.

The alternative asset investment firm has also received approval for GIFT City’s first property-focused fund of funds for offshore investors.

Private equity investments in the real estate sector have continued to increase over the past few years and even the past two years despite the pandemic scenario. The rise is mainly due to foreign funds investing in India, as the real estate recovery is now fully visible and long-term structural changes are bearing fruit.

Private equity investment in real estate grew 98% sequentially to $1.18 billion in the March quarter and is expected to top $6.88 billion in 2022, the real estate consultant said Knight Frank India.

Appetite for Indian real estate assets among global and domestic institutional investors continues to be strong as they eye a number of investment opportunities across residential, mixed-use, commercial, retail, industrial and other segments.