The ASK Group, which is supported by Blackstone, has unveiled a new property fund worth Rs 1,500 crore, building on the success of their earlier real estate fund. The group intends to complete fundraising by March and make approximately 8 to 10 investments across India's top five cities. The fund manager, ASK Property Investment Advisors, has a track record of raising over Rs 6,100 crore from a diverse set of investors, including family offices, high-net-worth individuals, and institutions. They are significantly contributing to the growth of India's real estate sector, with PE investments in the sector projected to reach $5.6 billion in 2023.
The ASK Group, with the backing of Blackstone, is making waves in the real estate investment arena. After securing a massive Rs 1500 crore for their real estate fund earlier this year, they have set their sights on yet another substantial property fund. Sunil Rohokale, the Managing Director and Chief Executive at ASK Group, revealed their ambitious plan to raise Rs 1000 crore by March, with the aim of completing the fund in the next 12 months. The focus remains on the top 5 cities, a strategy that has served them well in previous funds. Each investment will fall in the range of Rs 150 to Rs 200 crore.
ASK Property Investment Advisors (ASK PIA), the real estate-focused fund manager of the group has an impressive track record. They have raised over Rs 6,100 crore so far, drawing support from family offices, ultra-high net worth individuals (UHNIs), high net worth individuals (HNIs), and institutions. Over the past 12 years, they have participated in 35 projects and successfully completed 19 exits. Sunil Rohokale, Managing Director and Chief Executive at ASK Group took pride in their latest endeavour, highlighting that they have been involved in real estate private equity for 15 years.
Rohokale emphasized that the recent fund deployment was the fastest they had executed. In April of this year, they raised a fund worth Rs 1500 crore and committed Rs 900 crore in funds. They are well on track to achieve their deployment goals by March, aiming to utilize 100 percent of the funds and draw down 90 percent of the funds. ASK Property Fund, which is managed by ASK PIA, invested Rs 225 crore in a project by Pune's Kumar Realty using funds raised earlier this year. Their enthusiasm for real estate investments is well-founded, with the sector expected to receive PE investments of around $5.6 billion in 2023, representing a year-on-year growth of 5.3 percent, according to Amit Bhagat, CEO and MD of ASK Property Fund.
Domestic property funds have been turning to credit funds as traditional banks remain selective in lending and non-bank lenders are recovering from the NBFC fund crunch that began after the IL&FS crisis in 2018. Funds from organizations such as ASK Property Fund are stepping into the affordable housing sector, focusing their investments on this segment while providing liquidity and credit to reputable developers. This approach leverages asset management to mitigate risks in the market.
With the urban population projected to reach over 40 percent by 2030, affordable housing is on the rise and presents significant opportunities for private equity players. The likes of ASK Property Fund are addressing the supply-demand gap by channelling investments into this burgeoning sector, supporting the growth of the real estate industry, and contributing to India's economic landscape.
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