In Short:
ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has exited an investment made four years ago with a 20% return. The investment involved three projects with QVC Realty Developers. The fund, launched in 2017-18, has made exits worth ₹1,000 crore so far and is looking for new opportunities with an investment horizon of 3-5 years. Investors include high net worth individuals and family offices, with institutional investors showing interest due to potential returns.
ASK Property Fund Exits Investment with 20% RoR
ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has successfully exited one of its investments, with a return rate of 20% after investing ₹200 crore four years ago.
Structured Debt Funding
The investment was a structured debt funding done in 2019 and consisted of a basket of three projects involving QVC Realty Developers. The exit resulted in ₹354 crore, 1.8 times multiples of the capital invested.
Project Portfolio
Two projects are located in Gurgaon along the Dwarka expressway, including a joint development with Sobha Ltd. The third project, QVC Nandi Hills, is in Bengaluru.
Healthy Returns Amidst Market Challenges
The real estate sector faced challenges post the housing finance crisis in 2018 and during Covid. However, ASK Property Fund’s strategic selection of projects with a margin of safety led to healthy returns. Amit Bhagat, CEO and MD, highlighted that the fund is now focusing on identifying new opportunities with a 3-5 year investment horizon.
Investor Base and Future Plans
The fund’s investors are high net worth individuals and family offices, with institutional investors showing interest for future investments. ASK Real Estate Special Opportunities Fund IV, launched last year with a corpus of ₹1,180 crore, has already deployed Rs 900 crore in 9 deals. A third fund is currently in progress, with the first close expected soon.
Financial Overview
ASK Property Fund manages funds worth ₹6,250 crore and has made exits totaling ₹3,900 crore.
