ASK Property Fund, the real estate private equity arm of the ASK Group, announced an investment of Rs 225 crore in Pune from its recently raised fund, ASK Real Estate Special Opportunities Fund IV (RESOF IV).
The project predominantly comprises of residential developments and is part of the integrated township, Megapolis, located within Hinjewadi, which is being developed by Kumar Realty. In this integrated township 4,600 units are delivered and a majority are occupied. There are 3,000 units under construction and social infrastructure, including a reputed school, is operational. The catchment also stands to benefit from the improved connectivity once the metro line begins to operate from Hinjewadi to Shivaji Nagar. The project is focused towards affordable and mid-segment buyers.
According to ASK Property Fund Research, the micro market of Hinjewadi has enormous potential due to the presence of IT companies and multinationals which attracts talent and this gives an impetus to residential real estate demand. As per market sources, Hinjewadi has witnessed sales of over 9,000 units in the last two years. Y-o-Y price has appreciated by about 6-8% in the region.
Bhavin Jain, Chief Investment Officer, ASK Property Fund said, “This is our 15th project in Pune and we are pleased to collaborate again with Kumar Realty, who were our partners in the earlier fund. We follow rigorous partner selection criteria that entail high quality delivery, good customer experience, and sound track record. Seamless execution before, during, and after the pandemic has separated reputed developers from over-leveraged developers who have not focussed on customers. Pune has been a preferred city of deployment across our funds due to an end user 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.”
Amit Bhagat, CEO & MD, ASK Property Fund said, “Institutional investors have demonstrated their commitment to India and have made long-term investments in this sector. Overall, PE investments in the real estate sector are estimated to touch $5.6 billion in 2023, a 5.3 per cent y-o-y 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.”
