NEW DELHI: ASK Property Investment Advisors (ASK) said that it has announced the closing of its sixth real estate fund with Rs 610 crore. It intends to raise Rs 2,000 crore through this fund.
The fund will invest in the established residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru and Chennai.
Amit Bhagat, CEO & MD, ASK PIA said, “We have announced initial closure of more than Rs 610 crores (US $ 80 Mn), which will be invested in the established residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru and Chennai. Domestic investors account for 50% of the real estate fund raised, while overseas investors account for the remaining 50%. We are targeting a fund size of INR 2,000 Cr.”
“We have finalised few investments and are prepared for accelerated deployment given a very healthy pipeline and a structurally resilient residential segment.”, he added.
Sunil Rohokale, MD & CEO, ASK Group said, “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 y-o-y growth of more than 70% in sales value in FY2021-22. The average prices have risen by over 10% and this is likely to sustain given the increase in purchasing power in the segment.”
According to ASK PIA research, end user demand combined with declining inventory on one side and employment generation combined with income growth in service industry, IT, financial services and allied sectors are the drivers for sustained demand in residential sector.