ASK Group’s offshore realty fund invests $21M in ATS’ Noida project

ASK Group’s real estate investment arm has invested $21 million (or Rs 127 crore) in a project of Noida-based developer ATS, as per a company statement.

The project is located in Sector 150, Noida across 20 acres and is valued at Rs 1,000 crore having total saleable area of 1.7 million square feet.

The deal has been framed as structured equity. “The capital has been used by the developer to buy land,” said Sunil Rohokale, CEO & MD, ASK Group.

ATS usually ties up with funds at land acquisition level for all its projects.

This marks the debut investment of ASK Group from its first offshore fund. The company is raising its first offshore fund with a corpus of $200 million. It recently hit first close at $50 million and plans to wrap up the fund by March next year on the back of improved market conditions.

“This investment will help us raise the remaining $150 million from the LPs, as it will act as proof of our focus and strategy,” he said.

This is the third investment of the fund with the developer. It had previously invested and later exited its first investment in ATS - One Hamlet in Noida in 2012, clocking an IRR of 54 per cent.

Recently, the fund announced its exit from Liviano, a project by Darode Jog Properties in Pune, clocking an IRR of 30 per cent and a multiple of 2.35 in three years.

In an interaction with VCCircle, Rohokale had said that the fund is looking forward to re-investing in its investee companies. This financial year, the fund plans to deploy Rs 600 crore from its second domestic and first offshore fund and fully exit its maiden fund.

While speaking about this investment, Getamber Anand, chairman and managing director of ATS Group and president elect of industry body CREDAI, said, “This project is strategically located at Noida Expressway. Sector 150 has become a preferred destination in the past few years for home buyers and enjoys good demand due its proximity to important centres of the city and beyond.”

Recently, Godrej Properties struck a deal with Logix Group to launch a project in Sector 150, its first in Noida real estate market.

There have been a slew of deals in the Delhi NCR market with Landmark Holdings investing in Unitech’s Gurgaon project Nirvana, Xander investing roughly Rs 100 crore in an upcoming project of Delhi-based developer Prateek Group and Milestone investing Rs 50 crore in a Gurgaon project by Assotech.

(Edited by Joby Puthuparampil Johnson)

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