ASK Property Investment Advisors Pvt Ltd, the real estate investment arm of ASK Group, has exited its four-year-old investment in a project of Mumbai-based developer Rajesh LifeSpaces, the company said in a statement.
The investment was made in a residential housing project Raj Altezza from the second domestic fund of the PE firm. It had invested Rs 55 crore back in August 2011 and has exited at Rs 124.4 crore, clocking a return of 2.26 times and an internal rate of return (IRR) of 26 per cent.
The project is located at Mulund (W) in Mumbai and offers 2&3 BHK apartments in a 28-storey building.
Amit Bhagat, managing director and chief executive officer, ASK Property Investment Advisors, said, “We have chalked out detailed plans of exits from other investments over 6 to 12 months with targeted returns for our investors.”
Sunil Rohokale, managing director and chief executive officer, ASK Group, said, “ASK funds have demonstrated exit track record of close to Rs 1,000 crore clocking returns in the range of 2.25 to 2.5 times. This exit yet again demonstrates the success of ASK Group’s focused strategy of investing in mid segment residential real estate projects, in top metros, in partnership with experienced and reputed developers.”
This marks the first exit from the second domestic fund - ASK Real Estate Special Opportunities Fund - of the company. The fund, which had a corpus of Rs 1,000 crore, was raised in 2011-12 and is fully invested across residential projects in Mumbai, Pune, Bengaluru and NCR.
This marks the fifth exit of the PE firm in the last six months. Recently, it clocked two exits from housing projects of Amit Enterprises and Paranjape Schemes, clcoking multiples of 2.53 and 1.80 times, respectively.
It also exited ATS ONE Hamlet, a project of North-based developer ATS Group in Noida, with a multiple of 2.45 and Liviano, a project by Darode Jog Developers in Pune, which returned a multiple of 2.35.
On the exit front, the company has returned Rs 1,000 crore to its limited partners (LPs) in the last five years across its first and second domestic funds. Taking this divestment into account, the PE firm will be exiting two more projects this year and will be aiming at an IRR of 25-30 per cent.
“We will be exiting two-three projects which are in advanced stage of construction and have seen good sales volume. We expect the multiple to be in the range of 2.25-2.5 like most of our recent exits,” Rohokale had said in a recent interaction with VCCircle.
Meanwhile, the company hit first close of its third domestic fund at Rs 1,000 crore recently and aims to wrap up fundraising in three months. From its roster of funds, it is aiming to deploy Rs 750-800 crore across real estate in this financial year. It has a dry powder of 15-20 per cent from its second domestic fund and has raised $50 million to mark first close for the maiden offshore fund.
The firm has so far sealed 16 transactions with 10 developers including ATS Infrastructure, Godrej Properties, Shriram Property and Puravankara.
Recently, it invested Rs 55 crore in an ongoing township project of Paranjape Schemes (Construction) Ltd located in Bhugaon, Pune.