ASK Property Fund, The Private Equity Real Estate Division of ASK Group, Has Exited From The Eldeco Centre project in Delhi

New Delhi:

ASK Property Fund, the real estate private equity arm of ASK Group, has departed the Eldeco Centre project in Delhi.

The fund's investment in the project yielded a 21 percent internal rate of return (IRR).

The project is a commercial development in South Delhi that includes retail and office space.

"After demonetization, we spotted this counter-cyclical opportunity and chose to capitalise on South Delhi's high commercial demand.The robust returns are a result of entry point, asset, and partner choice "

Amit Bhagat, chief executive officer and managing director of ASK Property Fund, said as much.

Including the most recent departure, ASK has generated a total of 1 billion rupees in 2022. It departed the Gulshan Homz Gulshan One 29 project in Noida last month.

"Excellent metro connection, a well-established neighbourhood, the availability of public transportation, and social facilities are the key reasons for the area's tremendous demand," Bhagat said.

He noted that New Delhi is a mature office market with a total stock of over 12 million square feet and a consistent vacancy rate of 10 to 12 percent.

ASK Property Fund has raised around 800 billion and aims to raise a total of 1,500 billion by March 2023. The company has already invested 500 billion rupees from the fund. ASK specialises on private equity investments in the self-liquidating middle-income residential and affordable commercial markets. Since 2009, ASK PIA has raised around 5,000 crore from investors, including as family offices, affluent people, and organisations.

Additionally, the alternative asset investment business gained clearance for the first real estate-focused fund of funds in GIFT City for foreign investors.

During the years of the Covid-19 epidemic, private equity investments in the real estate industry increased.

During the first nine months of 2022, $3.4 billion was invested by institutions in Indian real estate, indicating a moderate level of interest.