ASK Property Fund to raise Rs 2,000 crore for Indian real estate by FY25

The company is looking to exit at least one project in every 2-3 months in FY25

Blackstone-backed ASK Property Fund, the real estate private equity arm of ASK Asset & Wealth Management Group, plans to raise over Rs 2,000 crore to deploy in Indian real estate by FY25, Amit Bhagat, CEO and managing director, told Moneycontrol. This will be the company's third debt fundraising and will commence post-election.

The funds raised will mainly target five markets—Bengaluru, Pune, Mumbai and Delhi-NCR.

Bhagat added that the company is also considering major investments in other cities and towns, but did not share details.

Bhagat added that the company is also considering major investments in Indian real estate, but did not share the details.

Currently, the company is looking at private equity investments in the self-liquidating mid-income and affordable residential segments, as well as the commercial segment. ASK Property Fund has raised about Rs 6,100 crore since 2009. The investor base involves family offices, ultra high net-worth individuals (UHNIs), HNIs and other institutions

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Looking at major exits in FY25

Bhagat added that the company is looking to exit at least one project every two to three months in FY25. "In the ongoing financial year, we are looking to exit at least four to six projects in the five cities we are active in. However, the majority of exits will be happening in Bengaluru and Pune," he said.

On May 13, the company announced the exit of Rs 156 crore from Avon Vista, a project being developed by Naiknavare Developers Balewadi, Pune. ASK Property Fund had invested Rs 80 crore in this project in 2018.

The recent exit has achieved a targeted internal rate of return (IRR) of 21 percent and a 2x multiple of the capital invested. IRR demonstrates the profitability of an investment.

To date, the company has invested in over 12 projects in Pune covering a total area of over 16 million square feet.

Last month, the company announced an exit of Rs 354 crore from QVC Realty Developers in three projects located in Bengaluru and Gurgaon. The two projects in Gurgaon are situated in the Dwarka Expressway catchment area, while the third project is in Nandi Hills, some 60 km from Bengaluru.

The investment amount was more than Rs 200 crore and the company clocked 1.8x multiples of capital invested with an IRR of about 20 percent.

"This was a recapitalisation opportunity before the NBFC (non-banking financial company) crisis. By providing the requisite and flexible working capital, we ensured the project’s completion, supported by sales during the life of the project," Bhagat added.