Real estate private equity fund ASK Property Investment Advisors has exited a residential project by Noida-based builder ATS Infrastructures in Gurgaon at internal rate of return (IRR) of 25 per cent. This will be the group’s sixth exit.
The investment of Rs. 147 crore was made from the ASK Real Estate Special Opportunities Fund in ATS Tangerine, in Sector 99A of Gurgaon on the Dwarka Expressway, in July 2013.
Now, the fund has an exit — its second so far — of Rs. 270 crore.
ASK raised its second fund in 2011-2012, which is fully committed in Mumbai, Pune, Bengaluru and NCR.
“Our first investment from the first fund was also with ATS in Noida in a project, One Hamlet, which was delivered two years back. We have invested in six transactions with ATS and have exited completely in four,” Amit Bhagat, managing director of ASK Property Investment Advisors said in a statement.
Sunil Rohokale, MD of ASK Group, said ASK had returned almost 48 per cent of the second fund equivalent in just over four years. “ASK funds have demonstrated an exit track record of close to Rs. 1,400 crore through its six full and seven part exits clocking returns in the range of 21 per cent to 25 per cent IRR,” Mr Rohokale said.
Mid-sized residential projects
He added that the group’s strategy was to stay focused on mid-sized residential projects in six metros: Mumbai, Delhi-NCR, Pune, Chennai, Bengaluru and Hyderabad.
In FY16, the ASK Group invested Rs. 365 crore in Rajesh Lifespaces’ Vikhroli project, Rs. 125 crore with the ATS group in the Noida project, Rs. 112 crore in Purvankara’s Chennai project and exited three investments.
The group exited its investment in Mumbai’s Rajesh Lifespaces with a multiple of 2.26 in over three years, and its investments in Pune, with Amit Enterprises and Paranjape, with a multiple of 2.53 (over three years) and 1.80 times (less than three years) respectively.
Additionally, the group exited One Hamlet, a project by the ATS Group in Noida, in 2012, with a multiple of 2.45 in just over two years and Liviano, a project by Darode-Jog Developers in Pune in 2010, while returning a multiple of 2.35 in just over three years. A
SK Group, through its Real Estate investment advisory business, manages Rs. 3,800 crore and has committed Rs. 2,200 crore in 21 projects.
