ASK Property Fund, the private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has invested Rs 190 crore in Kalpataru’s upper mid-income housing project in Mumbai’s Borivali suburb.
As published by the Economic Times, the project spans a 6-acre land parcel, with a development potential of around 6.5 lakh square feet. The anticipated revenue from this development is estimated at over Rs 1,200 crore. ASK Property Fund’s investment will be used for acquisition and working capital needs, ensuring the project progresses smoothly.
This marks the second collaboration between ASK Property Fund and Kalpataru Group. Bhavin Jain, chief investment officer at ASK Property Fund, noted that this investment aligns with their strategy of identifying repeat opportunities with existing partners. The capital infusion will support acquisition and necessary working capital for the project.
The Borivali project targets an end-user market, benefitting from recent infrastructure improvements. The area has seen strong demand, with low inventory overhang contributing to steady sales for the new residential units. The redevelopment involves two large housing societies, Yoganand and Jay Kamakshi Society, whose residents will receive a total redeveloped RERA carpet area of 2.95 lakh square feet.
Research from ASK Property Fund indicates that the Borivali micro-market has seen significant absorption over the past two years. In 2023, sales increased by approximately 18-20% year-over-year. This trend is expected to continue, with property values appreciating gradually due to the addition of quality housing supply.
Surge in Institutional Investments
India’s real estate market is currently experiencing a boom, with institutional investments reaching $3 billion in the first half of 2024. Mumbai leads this trend, with private equity investments rising to $1.7 billion from $1.2 billion the previous year. Indian private equity investors have also increased their participation to levels not seen in the past decade.
ASK Property Fund specializes in private equity investments in mid-income and affordable residential and commercial projects. Since its inception in 2009, the fund has raised Rs 6,100 crore from a diverse range of investors, including family offices, ultra-high net worth individuals, high net worth individuals, and institutions.
The work on the Borivali project is expected to begin in the next quarter, pending necessary approvals. ASK Property Fund’s significant investment highlights the project’s potential and the continued confidence in Mumbai’s real estate market.
With the influx of institutional investments and high demand for quality residential projects, Mumbai’s real estate market outlook remains positive. Strategic investments by entities like ASK Property Fund and Kalpataru are set to drive substantial growth and value appreciation in the coming years.