ASK Property Fund Raises Rs 2,000cr for Indian Real Estate

ASK Property Fund, the real estate private equity arm of ASK Asset & Wealth Management Group and backed by Blackstone, is gearing up to raise over Rs 2,000 crore to deploy in the Indian real estate market by fiscal year 2025. 

This marks the company’s third debt fundraising initiative, slated to commence post-election, as confirmed by Amit Bhagat, CEO and managing director, in an exclusive interview with Moneycontrol.

The funds raised will predominantly target five key markets: Bengaluru, Pune, Mumbai, and Delhi-NCR. While considering significant investments in other cities and towns, Bhagat refrained from divulging specific details.

Presently, ASK Property Fund is eyeing private equity investments in the self-liquidating mid-income and affordable residential segments, along with the commercial sector. Since its inception in 2009, the fund has successfully raised approximately Rs 6,100 crore. Its investor base comprises family offices, ultra-high net-worth individuals (UHNIs), high net-worth individuals (HNIs), and other institutions.

In terms of exits, Bhagat outlined the company’s objective to exit at least one project every two to three months in FY25. He stated, “In the ongoing financial year, we are looking to exit at least four to six projects in the five cities we are active in, with a focus on Bengaluru and Pune.”

Recently, ASK Property Fund announced its exit worth Rs 156 crore from Avon Vista, a project developed by Naiknavare Developers in Balewadi, Pune. This exit yielded a targeted internal rate of return (IRR) of 21 percent and a 2x multiple of the capital invested.

Additionally, the fund announced an exit of Rs 354 crore from QVC Realty Developers across three projects located in Bengaluru and Gurgaon. Notably, the investment amount exceeded Rs 200 crore, with the company achieving 1.8x multiples of capital invested and an IRR of approximately 20 percent.

Bhagat highlighted the strategic importance of providing flexible working capital to ensure project completion and support sales amidst market challenges, underscoring ASK Property Fund’s commitment to maximizing investor returns while navigating dynamic market conditions.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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