ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has invested Rs 1.9 billion in Kalpataru?s upper mid-income housing project in Borivali, Mumbai. This project spans a 6-acre land parcel, offering a development potential of around 650,000sq ft and an estimated revenue potential of over Rs 12 billion. The investment will be used for acquisition and working capital requirements.
This marks ASK Property Fund?s second investment with the Kalpataru Group. ?The investment aligns with our strategy and highlights our focus on repeat opportunities with existing partners. Our growth capital will support acquisition and necessary working capital,? said Bhavin Jain, CIO, ASK Property Fund.
Jain noted that the project caters to an end-user market and benefits from recent infrastructure improvements. The low inventory overhang and strong demand in Borivali will support healthy sales velocity for the residential project, which involves redeveloping Yoganand and Jay Kamakshi Society, offering 295,000 sq ft of RERA carpet area to existing residents.
The project is expected to commence next quarter, pending requisite approvals. According to ASK Property Fund Research, Borivali has seen a significant increase in absorption over the past two years, with sales rising by approximately 18-20% in 2023. The addition of quality supply has driven gradual property value appreciation, a trend likely to continue.
The Indian real estate market is currently experiencing a surge in institutional investments, with $3 billion inflows in the first half of 2024. Mumbai leads the private equity investment landscape, with inflows rising to $1.7 billion from $1.2 billion the previous year. Indian private equity investors have shown notable engagement, reaching levels of participation not seen in a decade.
Since 2009, ASK Property Fund has raised Rs 61 billion from investors, including family offices, ultra-high net worth individuals, high net worth individuals, and institutions, focusing on private equity investments in self-liquidating mid-income and affordable residential and commercial segments.
(Source: ET)
