ASK Property Fund Invests ₹190 Crore in Kalpataru’s Mumbai Project

ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has invested ₹190 crore in a project being developed by Kalpataru in Mumbai. This marks the fund’s second investment in the builder, highlighting a growing confidence in Kalpataru’s developments and the broader Mumbai real estate market.

The upper mid-segment project comprises 310 units and spans across 6 acres, with a total saleable area of about 6.5 lakh square feet. The funds from ASK Property Fund will be directed towards the acquisition and working capital requirements of the project. This strategic infusion of capital is expected to bolster the development's progress and market positioning.

Bhavin Jain, Chief Investment Officer at ASK Property Fund, expressed enthusiasm about the investment, stating, “The redevelopment project is an exceptional investment opportunity, given its location within an established catchment area. Our growth capital is aimed at providing acquisition and necessary working capital funding.” This statement underscores the fund's strategy of targeting projects in prime locations with strong market fundamentals.

The project’s location in Borivali, a suburban area in Mumbai, is particularly noteworthy. Borivali has seen substantial infrastructure development in recent years, making it a desirable destination for end-users. The catchment area benefits from infrastructure augmentation, leading to increased accessibility and improved living standards. The redevelopment project aims to tap into this demand, promising healthy and sustained sales velocity.

As per ASK Property Fund Research, Borivali real estate offers substantial potential for property value appreciation. The market has experienced a significant increase in absorption over the past two years, with an 18-20 percent rise in sales in 2023. This trend suggests a robust demand for residential properties in the area, driven by both end-users and investors looking for stable returns.

The strategic investment by ASK Property Fund is aligned with the broader trends in Mumbai's real estate market, where redevelopment projects are gaining traction. Redevelopment offers a viable solution to the city's limited land availability, providing modern housing options in established neighborhoods. Kalpataru’s project, with its sizable development area and strategic location, fits well within this trend.

Moreover, the investment reflects the confidence of institutional investors in the long-term potential of Mumbai’s real estate market. The city continues to be a hotspot for real estate development, backed by a strong economic base and ongoing infrastructure projects such as the Mumbai Metro expansion and road improvements.

ASK Property Fund’s ₹190 crore investment in Kalpataru’s Mumbai project underscores the fund's commitment to strategic investments in high-potential real estate developments. The project’s prime location in Borivali, combined with the fund's capital infusion, is expected to contribute to the ongoing growth of Mumbai's real estate market.

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