ASK Property Fund, the real-estate private equity arm of the Blackstone-backed ASK Group, announced an investment of Rs 225 crore for developing residential projects in Pune in Maharashtra
The investment will be made from the firm’s recently raised fund, ASK Real Estate Special Opportunities Fund IV (RESOF IV), the company said in a press statement on September 13.
The project predominantly comprises residential developments and it is part of the integrated township, Megapolis, located within the Hinjewadi area in Pune, and being developed by Kumar Realty, the statement said.
In this integrated township, 4,600 units have been delivered and around 3,000 are under construction. The project is focused on affordable and mid-segment buyers. The catchment is also set to benefit from the upcoming metro line from Hinjewadi to Shivaji Nagar.
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According to ASK Property Fund Research, the micro market of Hinjewadi has “enormous potential” due to the presence of IT companies and multinationals, giving an impetus to residential real-estate demand.
According to market sources, Hinjewadi has witnessed sales of over 9,000 units in the last two years. Year-on-year price has appreciated by about 6-8 percent in the region, the company said.
Bhavin Jain, Chief Investment Officer, ASK Property Fund, said that it is the company’s 15th project in Pune.
“We follow rigorous partner selection criteria that entail high quality delivery, good customer experience, and a sound track record. Pune has been a preferred city of deployment of our funds as it as an affordable market, which has seen consistent absorption and the lowest unsold under-construction inventory amongst top six cities. This investment is in one of the successful township projects of Hinjewadi that has consistently attracted end users,” Jain said.
Amit Bhagat, CEO and MD, ASK Property Fund, said, “Overall, PE investments in the real-estate sector are estimated to touch $5.6 billion in 2023, a 5.3 per cent YoY growth. Our focus continues to be in the mid segment where affordable housing and proximity to job corridors is the winning mix. We have a stellar track record of investments across 35 projects and 19 complete exits in just 12 years. We will continue to identify early to mid-mile funding growth capital requirements for reputed developers.”
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