Financial services company ASK group is planning to pump in over Rs 1,000 cr as private equity in housing projects in the mid-segment and affordable housing segment in 2017-18. With an investment of Rs 700 cr already made in last fiscal, the company is expecting more opportunity in the real estate sector after the implementation of the new realty law and the GST.
"We are more convinced of the opportunity due to ensuing consolidation in the sector after introduction of RERA and GST. There is a room for only serious, committed, customer- centric and well capitalised player in the sector," said ASK Property Investment Advisors Managing Director, Amit Bhagat.
ASK Property Investment Advisors is a venture of the ASK group set up to manage and advise real estate dedicated funds. So far the company has mainly invested in housing projects in six major cities-- Delhi-NCR, Mumbai, Pune, Bengaluru, Chennai and Hyderabad.
Bhagat said the company has already invested about Rs 300 cr during this fiscal and it has a healthy pipeline. ASK Group in May this year invested Rs 200 cr in ATS Infrastructure's mixed use development project 'Knight Bridge' in Noida. This deal marked the company's foray into the commercial real estate space.
Bhagat declared that in the span of last 6-7 years, the group has already invested Rs 3,000 cr in the real estate projects and made an exit of worth Rs 1,000 cr with a healthy return on investment of 18-30 per cent at project level. On fund raising, he said the company has raised Rs 535 cr so far under its seventh fund and will reach Rs 1,000 cr by March 2018. The developers are raising funds from domestic as well as global investors to construct their projects.
ASK group has four key businesses -- wealth advisory and multifamily office service ASK Wealth Advisors, portfolio management services ASK Investment Managers, real estate private equity ASK Property Investment Advisors and private equity management ASK Pravi Capital Advisors.