The project will be constructed on a 10-acre land parcel, which has a potential of developing a saleable area of over 2 million sq ft comprising low-rise and high-rise apartments.
The company has already acquired the land parcel strategically located in Noida’s sector 107 with established social and commercial infrastructure.
“This is our seventh investment in Noida and eleventh in NCR. With this investment the ASK group has now invested in projects over 21 million sq ft including over 8,000 residential units in Noida,” said Amit Bhagat, CEO & MD, ASK PIA.
According to him, the project is in line with ASK Property Investment Advisors’ strategy of providing funds for mid-income housing executed by established developers with execution track record along job growth corridors.
The proposed project is in close proximity to the Aqua Line metro, Noida Expressway and several large information technology and office parks including the Noida and Samsung Special Economic Zones.
“The project is located adjacent to the premium residential Sector 47 and Sector 104 of Noida. This is one of the few projects where land is fully paid for before commencement of sales. We are optimistic on the outlook for the sector in the coming years and anticipate a sustained recovery in residential demand. We have decided to partner with ASK because of their wealth of experience and deep understanding of the Noida market,” said Amit Jain, Director, Mahagun Group.
ASK PIA, the alternate asset investment arm of the ASK Group, focusses on private equity investments in self-liquidating mid-income and affordable residential and commercial assets. It has raised around Rs 5,000 crore since 2009 from investors including family offices, ultra-high networth individuals (UHNI), high networth individuals (HNI) and Institutions.
“The last couple of years have witnessed a consolidation of demand for homes by reputed, execution-focussed and bankable developers and their projects. Mid-income housing has seen a substantial recovery and prices have bottomed out in the last six months. This has led to high sustainable demand,” said Sunil Rohokale, MD & CEO, ASK Group.
According to him, lowest home loan rates, concessions in stamp duty charges, and flexibility by developers have increased the affordability and affinity towards home purchase. Therefore, all the projects, which are focusing on middle income housing located in growth corridors and that have achieved financial closure, will be key beneficiaries.
Private equity investments into the real estate sector have continued to rise over the last few years and even the last one year despite the pandemic scenario. The surge is driven by both foreign and domestic funds investing in India as the real estate recovery is now fully visible and the structural long-term changes are fructifying.