ASK Property Investment Advisors Announces the Initial Closure of INR 610 Cr Of Its Real Estate Fund

The funds raised will be invested in the established residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru and Chennai.

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ASK Property Investment Advisors (ASK PIA) has announced the initial closing of its latest and sixth real estate fund at INR 610 crores.

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"We have announced initial closure of more than INR 610 crores ($80 million), which will be invested in the established residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru and Chennai. Domestic investors account for 50 per cent of the real estate fund raised, while overseas investors account for the remaining 50 per cent. We are targeting a fund size of INR 2,000 crores. We have finalised a few investments and are prepared for accelerated deployment given a very healthy pipeline and a structurally resilient residential segment," said Amit Bhagat, CEO and MD, ASK PIA.

Over the last few years, private equity investments in income-yielding commercial, industrial, residential and data centres have increased significantly. The increase is primarily led by foreign capital inflows in India.

According to ASK PIA research, end-user demand combined with declining inventory as well as employment generation combined with income growth in service industry, IT, financial services and allied sectors are the drivers for sustained demand in the residential sector.

"The swift rebound, as indicated by a significant increase in sales velocity following the Covid period, has been very encouraging. We believe the residential market is already on a growth trajectory in 2022 and is likely to follow the same trend in the coming years. Selection of suitable developers, relevant micro-markets and entry at the right price have always been our strength. Our portfolio projects have shown robust performance and witnessed year-on-year growth of more than 70 per cen in sales value in FY2021-22. The average prices have risen by over 10 per cent and this is likely to sustain given the increase in purchasing power in the segment," said Sunil Rohokale, MD and CEO, ASK Group.

ASK PIA is the alternate asset investment arm of the ASK group, a major player in the asset and wealth management business, set up 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 PIA has raised around INR 5,000 crores since 2009 and its investors include family offices, ultra high net worth individuals (UHNI), high net worth individual (HNI) and institutions.