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ASK Property Fund, the real estate private equity arm of the ASK Group with backing from Blackstone, has announced a significant investment of Rs 225 crore for the development of residential projects in Pune, Maharashtra. This strategic investment comes from ASK Real Estate Special Opportunities Fund IV (RESOF IV), which was recently established. The venture primarily focuses on residential developments and is part of the larger Megapolis integrated township project situated in Hinjewadi. Kumar Realty is the driving force behind this integrated township, which has already delivered 4,600 units, the majority of which are now occupied. An additional 3,000 units are currently under construction, and essential social infrastructure, including a well-regarded school, is already operational.
Hinjewadi, the micro-market in which this project thrives, has immense potential due to its proximity to IT companies and multinationals. This proximity draws a talented workforce and subsequently fuels the demand for residential real estate. In the last two years alone, Hinjewadi has witnessed sales of over 9,000 units, and property prices have appreciated by approximately 6-8 percent year-on-year in this region. Bhavin Jain, the Chief Investment Officer of ASK Property Fund, expressed his satisfaction with this investment, noting that it marks the 15th project the fund has undertaken in Pune. Furthermore, he highlighted the valuable partnership with Kumar Realty, emphasizing the fund's stringent partner selection criteria, which prioritize high-quality delivery, an excellent customer experience, and a solid track record.
Jain highlighted that Pune has consistently remained a preferred city for investment across their funds because of its affordable market for end-users. This market has sustained consistent absorption rates and boasts the lowest unsold inventory among the top six cities. This investment bolsters one of Hinjewadi's successful township projects, renowned for attracting end-users consistently. Since 2009, ASK PIA has secured approximately Rs 6,100 crore in investments, with participation from family offices, ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), and institutional investors.
Amit Bhagat, the CEO and MD of ASK Property Fund, underlined the commitment of institutional investors to India and their long-term investments in the real estate sector. He noted that overall, private equity investments in the real estate sector are anticipated to reach $5.6 billion in 2023, representing a 5.3 percent year-on-year growth rate. Bhagat stressed that the fund's focus continues to be on the mid-segment, where the winning combination comprises affordable housing options and proximity to employment hubs. With a remarkable track record of investments across 35 projects and 19 successful exits in just 12 years, ASK Property Fund is determined to identify early to mid-mile funding requirements for established developers, further driving the growth capital needs of the sector.
In summary, ASK Property Fund's investment of Rs 225 crore in Pune's residential projects underscores its commitment to tapping into the city's thriving real estate market. The fund's track record of partnering with reputable developers and prioritizing customer satisfaction sets it apart in the real estate sector. Additionally, this investment reflects the confidence of institutional investors in India's real estate industry, further solidifying ASK Property Fund's prominent position in the market.
This story was earlier published in ET Realty
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