With the closing of its sixth fund, ASK Property Fund, the real estate private equity arm of the ASK Group raised more than Rs 15 billion, Real Estate Special Opportunities Fund IV including investors' co-investments.

The fund will primarily invest in mid-income and affordable residential development projects, with a focus on the real estate markets in the top five cities in the nation. The private equity firm hopes to use the funds in the established residential markets of Mumbai, Pune, the National Capital Region, Bengaluru, and Chennai.

Amit Bhagat, CEO & MD, ASK Property Fund told a news publication that as a private equity fund, they are glad to announce the successful closing of the latest real estate fund. The firm is excited to continue partnering with customer-focused developers committed to the timely delivery of quality residential sustainable dwellings. The customer-centric approach automatically ensures superior risk-adjusted returns.

According to him, more than 60 per cent of investors in the latest fund are repeat investors from its previous funds including domestic investors, offshore entities, and family offices and the average ticket size of these investments is around Rs 100 million.

Based on the current pipeline and discussions, ASK Property Fund intends to deploy the entire Real Estate Special Opportunities Fund IV in the current fiscal year. The fund has an aggressive deployment plan.

For real estate developers and financiers, India's mid-income and affordable housing market has become a significant growth opportunity. This development is supported by the rising demand in this market due to rising income levels and in the context of the government's push.

More than 40 per cent of Indians are predicted to live in urban areas by 2030, up from the current 35 per cent, which will increase the demand for affordable housing and present enormous investment opportunities for private equity players.

Funds, like ASK Property Fund, have entered the affordable housing market to address the supply issue. Using asset management to manage risks, the funds have concentrated their investments on the construction of affordable housing while offering liquidity and credit to reliable developers.

According to recent studies, the top seven cities in India added 522 million square feet of new residential space in 2021, and 562 million square feet were sold in 2022. By the end of 2022, the inventory overhang will have decreased to 13 months. The share of affordable housing in all residential sales was between 16 to 20 per cent.

The ASK Group's alternate asset investment division ASK Property Fund, was created to oversee and provide management advice for real estate-specific funds. The focus is on private equity investments in self-liquidating mid-income and affordable residential and commercial segments.

ASK Property Investment Advisors has risen over Rs 61 billion so far and its key investors include family offices, Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI) and Institutions.

ASK Group manages assets worth over $8.98 billion as of March end across multiple asset classes and investors with its set up across India, Dubai, and Singapore.

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