Maneesh Yadav, former chief executive of Aditya Birla Real Estate Fund, has joined ASK group's newly setup property-focused non-banking financial company ASK Financial Holdings (ASKFH) as its chief executive officer, a source close to the development told Business Standard.
ASKFH commenced commercial operations in FY2018 and is focussed on wholesale lending to real-estate developers.
The company is a subsidiary of ASK Investment Managers (ASKIM), the equity and property investment and advisory firm, which primarily caters to the high net worth (HNI) and ultra HNI individuals.
ASK group could not be reached for comments on hiring Yadav.
Earlier this month, the ASKIM filed its draft red herring prospectus (DRHP) for public issue of 17.9 million equity shares. In total, the company aims to raise around Rs 20 billion through the IPO and will use a part of the proceeds to augment the capital base of ASKFH.
ASKFH will originate debt instruments that are issued by real-estate developers for capital and will onsell these ‘high yielding corporate debt securities’ to their HNI, UHNI and corporate clients.
Yadav had spent over a decade with Aditya Birla Capital's mortgage and real estate business and at last as the CEO of the company's real estate fund for two years. His was the second high-profile exit in the company after the previous chief executive Apurva Muthalia quit in late 2016 and joined the Indian arm of Chinese company Fosun International.
ASKIM also has subsidiaries like ASK Wealth Advisors, ASK Property Investment Advisors and ASK Property Advisory. The property investment company provides real estate investment advice and research services.
Driven by demand for credit from real estate developers, non-banking companies (NBFCs) are setting up real estate verticals and hiring senior executives to head them.
Recently, RattanIndia Finance, a joint venture between Lone Star, a global private equity and real estate investment firm and RattanIndia Group, hired Anchit Lakhotiya, a senior executive from Altico Capital.
APAC Financial, an NBFC set up by Gunit Chadha, former chief executive of Deutsche Bank, Asia Pacific, hired Sunteck Realty chief operating officer Sumesh Mishra as head of real estate lending. Mishra will be part of the core team of the structured finance business of APAC Financial.
The NBFC would focus on affordable housing finance, corporate finance and lending to real estate.
Late last year, Sandeep Agarwal, executive director at Kotak Realty Fund, left the fund manager to join the non-banking finance company set up by Centrum to head its real estate vertical.
However, lenders are not adding new real estate verticals without a reason. According to rating firm India Ratings, NBFCs' market share in real estate funding is expected to reach 17.8 per cent by FY20 from 13.7 per cent currently.
While the overall real estate loan book expanded at a CAGR of about 15 per cent between FY14 and December FY18, India Ratings said the NBFC real estate book expanded at a CAGR of 60.9 per cent albeit on a smaller base.
During the period, the banks' share in real estate funding has declined to 63.4 per cent from 77.1 per cent as the risk perception increased at a time when banks were struggling with asset quality and capitalisation issues.