ASK Property Investment Advisors (ASK PIA) announced the initial closing of the Real Estate Fund (RESOF IV). This is the sixth real estate fund by ASK PIA.
Over the last few years, private equity investments in income yielding commercial, Industrial, residential and data centres have increased significantly. The increase is primarily led by foreign capital inflows in India.
Amit Bhagat, CEO & MD, ASK PIA said, “We have announced initial closure of more than Rs 610 crores ($80 million), which will be invested in the established residential markets of Mumbai, Pune, Noida, Gurgaon, Bengaluru and Chennai. Domestic investors account for 50 percent of the real estate fund raised, while overseas investors account for the remaining 50 percent. We are targeting a fund size of Rs 2,000 crore.”
“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 percent in sales value in FY2021-22. The average prices have risen by over 10 percent 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.