Key facts
- ASK Property Fund is launching a new Rs 3,500 crore debt fund.
- The fund will focus on financing mid-segment residential projects in major Indian cities.
- It aims to support developers through structured financing, lender replacement, and stalled project completion.
- The fund targets investment-level returns of 20%.
- Capital will be sourced from both domestic and offshore investors.
ASK Property Fund, part of the Blackstone-backed ASK Asset & Wealth Management group, is planning to raise Rs 3,500 crore for its fourth real estate debt fund, ASK Real Estate Special Situations Fund IV. This fund will focus on providing structured financing to mid-segment housing projects across key Indian metropolitan areas including Mumbai, Delhi NCR, Pune, Bengaluru, Chennai, and Hyderabad.
The fund's strategy includes lender replacement, providing capital for project completion, and offering growth capital, particularly for acquiring stalled projects or those in insolvency proceedings. This initiative reflects the growing trend of private credit funds filling funding gaps in the residential development sector where traditional lenders may be hesitant.
ASK Property Fund highlighted its past success with previous debt funds, citing a simple average Internal Rate of Return (IRR) of 19% and an investment multiple of 1.8x across 40 full exits. The firm aims to generate similar risk-adjusted returns with the new fund, targeting investment-level returns of 20%.
Over the past two years, ASK Property Fund has raised approximately Rs 2,500 crore and committed around Rs 2,100 crore in the last fiscal year to various projects. The company has also successfully exited several investments, returning capital to investors with strong multiples and XIRRs.