ASK Property Fund, the real estate private equity arm of the ASK Group, has invested Rs 225 crore in Pune through its recently raised fund, ASK Real Estate Special Opportunities Fund IV (RESOF IV). The project mainly consists of residential developments and is part of the integrated township, Megapolis, located in Hinjewadi. Kumar Realty is developing the township, which currently has 4,600 units, with a majority already occupied. Social infrastructure, including a renowned school, is operational, and an additional 3,000 units are under construction. Once the metro line starts operating from Hinjewadi to Shivaji Nagar, the catchment area is expected to benefit from improved connectivity. The project is aimed at affordable and mid-segment buyers.
According to ASK Property Fund Research, Hinjewadi’s micro-market has significant potential due to the presence of IT companies and multinationals, which attract talent and spur residential real estate demand. Hinjewadi has seen over 9,000 unit sales in the last two years, and the Y-o-Y price has appreciated by approximately 6-8% in the region.
Bhavin Jain, Chief Investment Officer at ASK Property Fund, stated, “This is our 15th project in Pune, and we are delighted to partner again with Kumar Realty, who were our partners in the previous fund. We have a stringent partner selection criterion that requires high-quality delivery, excellent customer experience, and a sound track record. During the pandemic, seamless execution has separated reputed developers from over-leveraged developers who have not prioritized customers. Pune has consistently been a preferred city for our funds due to its end-user affordable market, which has seen consistent absorption and the lowest unsold under-construction inventory among the top six cities. This investment is in one of the prosperous township projects of Hinjewadi that has consistently attracted end-users.”
Amit Bhagat, CEO & MD at ASK Property Fund, added, “Institutional investors have demonstrated their commitment to India by making 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 percent YoY growth. Our focus remains on the mid-segment, where affordable housing and proximity to job corridors are the winning mix. We have a remarkable 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.”
