ASK Property Fund Invests INR 190 Crore in Kalpataru's Borivali Housing Project

Mumbai:

ASK Property Fund, the real estate private equity division of the Blackstone-backed ASK Asset & Wealth Management Group, has committed ₹190 crore to Kalpataru’s upper mid-income housing project in Borivali, a prominent Mumbai suburb.

Project Highlights and Financial Potential

The expansive project covers a 6-acre land parcel, with a development potential of approximately 6.5 lakh square feet and an estimated revenue potential exceeding ₹1,200 crore. The investment will support both the acquisition and working capital needs of the project. This marks the second collaboration between ASK Property Fund and the Kalpataru Group.

Strategic Alignment and Market Insights

Bhavin Jain, CIO of ASK Property Fund, mentioned that the investment aligns perfectly with their strategy, marking a milestone in their efforts to identify and capitalize on repeat opportunities with established partners. Their growth capital is intended to facilitate acquisition and provide essential working capital.

He further noted that the project primarily targets end-users, benefiting from recent infrastructure improvements in the area. The low inventory overhang and robust demand in the micro-market are expected to drive strong and sustained sales for the residential development.

Project Commencement and Development Details

The project is slated to begin in the next quarter, pending the necessary approvals. It involves the redevelopment of two significant housing societies, Yoganand and Jay Kamakshi Society, in Borivali. The current residents will receive a total redeveloped RERA carpet area of 2.95 lakh square feet.

Market Performance and Future Outlook<

ASK Property Fund Research indicated that the Borivali micro-market has seen a substantial increase in absorption rates over the past two years, reflecting the strong demand and favorable conditions for residential projects in this area.