ASK Property Fund and India Sotheby’s Unveil ₹1,000-Crore Luxury Real Estate Fund to Capitalize on High-End Housing Demand

ASK Property Fund and India Sotheby’s International Realty Launch India’s First Luxury Real Estate Investment Platform

In a significant development for the Indian real estate market, ASK Property Fund and India Sotheby’s International Realty have announced the launch of the ASK Curated Luxury Assets Fund, a groundbreaking initiative aimed at investing in luxury housing projects across major cities in India. With an initial size of Rs 1,000 crore and an additional green shoe option of Rs 500 crore, this fund represents a strategic collaboration between two industry leaders, marking a new chapter in luxury real estate investment in the country.

The Vision Behind the Fund

The ASK Curated Luxury Assets Fund is designed to tap into the burgeoning demand for high-end residential properties in India. As the country witnesses a rise in wealth and a growing affluent class, the need for luxury housing has become increasingly pronounced. The fund aims to cater to this demand by investing in premium residential projects, holiday homes, and sought-after second-home micro-markets, including popular religious destinations.

The fund is registered with the Securities and Exchange Board of India (SEBI) as a Category II Alternative Investment Fund under the SEBI (Alternative Investment Funds) Regulations, 2012. This regulatory backing ensures that the fund operates within a structured framework, providing a level of security and transparency for investors.

Strategic Collaboration

ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has a proven track record in managing successful real estate investments. Partnering with India Sotheby’s International Realty, a leading luxury real estate consultant, enhances the fund’s capabilities by combining deep market insights and expertise in the luxury segment.

Both organizations will act as co-sponsors of the fund, making equal capital commitments, although the specific amounts of their investments have not been disclosed. This collaboration is expected to leverage the strong brand presence of India Sotheby’s International Realty and the investment acumen of ASK Property Fund to create a unique value proposition for investors.

Target Investors and Fund Objectives

The ASK Curated Luxury Assets Fund is set to attract a diverse range of investors, including family offices, high-net-worth individuals, insurance companies, pension funds, banks, financial institutions, sovereign funds, and multilateral institutions. By raising third-party capital in accordance with SEBI guidelines, the fund aims to create a robust investment vehicle for those looking to capitalize on the luxury real estate market.

The primary objective of the fund is to generate superior risk-adjusted returns for its investors. By focusing on high-end residential projects in India’s top cities and emerging luxury markets, the fund is poised to deliver attractive investment opportunities in a sector that is expected to grow significantly in the coming years.

Insights from Industry Leaders

Amit Bhagat, co-founder, CEO, and Managing Director at ASK Property Fund, expressed confidence in the potential of the luxury residential real estate market in India. He stated, "We are excited to collaborate with India Sotheby’s International Realty, leveraging its strong brand presence and deep expertise in the luxury real estate segment, to launch India’s first luxury residential opportunity-focused fund." This sentiment underscores the optimism surrounding the fund’s prospects and the overall growth of the luxury housing sector.

Amit Goyal, Managing Director of India Sotheby’s International Realty, echoed this enthusiasm, highlighting ASK Property Fund’s outstanding track record and profound investment insights. He emphasized the unique value proposition that this strategic collaboration brings to the table, further solidifying the fund’s potential for success.

A Track Record of Success

Since its inception in 2009, ASK Property Fund has raised approximately Rs 7,200 crore, attracting investments from a diverse array of sources, including family offices, ultra-high-net-worth individuals, and institutional investors. This history of successful fundraising and investment management positions the ASK Curated Luxury Assets Fund as a promising opportunity for those looking to invest in India’s luxury real estate market.

Conclusion

The launch of the ASK Curated Luxury Assets Fund marks a pivotal moment in India’s real estate landscape, as it introduces the country’s first luxury residential investment platform. With the combined expertise of ASK Property Fund and India Sotheby’s International Realty, this initiative is set to cater to the growing demand for luxury housing while providing investors with attractive returns. As the Indian economy continues to flourish, the luxury real estate market is poised for significant growth, making this fund an exciting opportunity for discerning investors.