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ASK Finance, the non-banking financial company (NBFC) division of the ASK Group, has announced the closure of a debt transaction of INR 40 crore with Sowparnika Projects & Infrastructure, a prominent affordable housing builder based in Bangalore. The investment has been made in Sowparnika Ashiyana, a mid-income affordable housing project located near Whitefield, Bangalore, that boasts over 750 homes. Sources indicate that the capital raised will be utilized for the project's construction and to enable Edelweiss to exit its investment.
ASK Financial Holdings' CEO and Managing Director, Maneesh Yadav, stated that the availability of working capital for affordable housing projects located in economic growth corridors by reputable developers who have a solid track record of delivering projects is critical to their strategy. This is particularly important considering the significant demand for affordable homes and the government's supportive initiatives aimed at promoting affordable housing.
Sowparnika Projects & Infrastructure has already developed over 5.2 million square feet of affordable homes and delivered over 7,500 homes in various locations such as Bangalore, Mysore, Coimbatore, and multiple locations across Kerala. The company's Managing Director, Ramji Subramaniam, said that they remain committed to the affordable housing segment and have recently launched two new projects in Hoskote and Sarjapur, which have already received significant interest from potential homebuyers.
The ASK Group currently has over $9.3 billion of assets under management as of December 31, 2022. Last year, its alternate asset investment arm, ASK Property Investment Advisors, raised over $80 million (approximately INR 610 crore) through the initial closing of its sixth real estate fund. The funds will be invested in the residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru, and Chennai.
Sowparnika's strategy has been focused on developing affordable homes in line with the government's "Homes for All by 2025" initiative. The segment has received a further boost with the government's proposal in the Union budget 2023-2024 to increase the outlay for PAY, infrastructure spending and establish a dedicated urban infrastructure fund.
The residential segment is expected to see new launches remain well under control in most top cities in 2023. In 2022, there were 247,000 new residential units launched, the most in over a decade and second only to the previous high of 281,000 units in 2010. This represents a year-over-year growth of 81% compared to the previous year.
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