Getty ImagesASK Property Investment Advisors, the real estate private equity arm of the ASK Group is looking to raise Rs 1,000 crore though it's new real estate focussed fund ASK Real Estate Special Opportunities Fund – IV.
The fund also has an additional Rs 1,500 crores green shoe option. ASK PIA is looking to the raise funds via a mix of offshore and domestic investors.
“This fund’s strategy is a mirror image of our fully deployed previous fund. We 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 crores by September. We currently have a strong pipeline of over Rs. 500 crore of investments pre-identified for deployment. We have deployed over Rs. 400 crores during the quarter ending Mar-2021," said Amit Bhagat, CEO & MD, ASK PIA.
The fund is in line with ASK’s focus on the affordable & mid segment residential and mix land use projects. The fund will focus on job growth corridors across the top 6 cities of India including the Mumbai Metropolitan Region (MMR), Delhi-NCR, Bangalore, Chennai, Pune, and Hyderabad.
The real estate sector has been facing a paucity of capital since the NBFC crisis in 2018 which has been heightened, since last year, due to the ongoing pandemic. On the contrary, sales in the sector have been witnessing green-shoots of revival since H2-FY2021. We foresee 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...Our fund will leverage on the shortage of capital and rising demand to deliver superior risk adjusted returns," Sunil Rohokale, MD & CEO, ASK Group.
The fund will identify projects of established developers and provide funding to ensure financial closure for seamless execution and timely completion.
The fund also has an additional Rs 1,500 crores green shoe option. ASK PIA is looking to the raise funds via a mix of offshore and domestic investors.
“This fund’s strategy is a mirror image of our fully deployed previous fund. We 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 crores by September. We currently have a strong pipeline of over Rs. 500 crore of investments pre-identified for deployment. We have deployed over Rs. 400 crores during the quarter ending Mar-2021," said Amit Bhagat, CEO & MD, ASK PIA.
The fund is in line with ASK’s focus on the affordable & mid segment residential and mix land use projects. The fund will focus on job growth corridors across the top 6 cities of India including the Mumbai Metropolitan Region (MMR), Delhi-NCR, Bangalore, Chennai, Pune, and Hyderabad.
The real estate sector has been facing a paucity of capital since the NBFC crisis in 2018 which has been heightened, since last year, due to the ongoing pandemic. On the contrary, sales in the sector have been witnessing green-shoots of revival since H2-FY2021. We foresee 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...Our fund will leverage on the shortage of capital and rising demand to deliver superior risk adjusted returns," Sunil Rohokale, MD & CEO, ASK Group.
The fund will identify projects of established developers and provide funding to ensure financial closure for seamless execution and timely completion.
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