ASK Property Fund invests Rs 340 crore in three Mantra Group projects

Two of the three projects are being acquired through the NCLT route

• ASK Property Fund invests Rs 340 crore in three Mantra Group housing projects
• Funds to help settle dues and provide working capital for stalled projects
• Investment to benefit over 900 families awaiting homes in Mumbai and Pune

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Blackstone-backed ASK Group's real estate investment arm, ASK Property Fund, has announced an investment of Rs 340 crore towards three residential projects slated to be developed by Pune-based firm Mantra Group. One of the projects is located on the Jogeshwari-Vikhroli Link Road (JVLR) in Mumbai, while the other two are located in Pune's Wakad and Mundhwa suburbs.

In a release, ASK Property Fund said that the investment is meant towards Mantra Group's acquisition of two projects through the National Company Law Tribunal's (NCLT) insolvency process, as well as a third project being taken up by the group. The funds will be used to settle dues to financial creditors in the projects being acquired, as well as provide for working capital requirements for the projects.

"We remain committed to providing growth capital for land acquisition of residential projects linked to approvals and requiring financial closure of up to Rs 500 crore," said Amit Bhagat, CEO and MD of ASK Property Fund.

Mantra Group is generally known for its mid-premium residential projects in the Pune market, as well as a selection of commercial assets. In a release, ASK and Mantra said that the locations and land parcels of the projects make them attractive to buyers. The JVLR project is located on a nine acre land parcels, while the Wakad and Mundhwa land parcels are five acres and eight acres respectively. The firm said that the funding will help deliver homes to hundreds of families whose homes were stuck for long periods of time.

"The collaboration between ASK Property Fund and Mantra Group is coming at a very opportune time. Of the three projects that are being invested in, two of them have been stuck for a significant time, leaving many homebuyers in a lurch. In the Mumbai project, Mantra’s acquisition and ASK Property Fund’s investment will impact the lives of 576 families residing on the land parcel and another 350 families who had purchased homes in the erstwhile proposed development," said Rohit Gupta, CEO of Mantra Properties.