ASK Property Investment Advisors (ASK PIA), the real estate private equity arm of financial services firm ASK Group, has exited from Liviano, a residential project by Darode Jog Properties, in Kharadi, Pune, for Rs 87 crore ($14.5 million).
The Darode Jog investment was made over a phased manner between September 2010 and March 2011, from ASK’s first Rs 326 crore Special Opportunities Portfolio. It had invested Rs 37 crore in total, which translates into an IRR of around 30 per cent.
This follows an earlier exit made by ASK Group in April 2012 in which it exited its investment in
ATS One Hamlet in Noida with an IRR of 54 per cent and a multiple of 2.45x in a short period of two years.
The investment firm had raised its maiden fund in 2009 and fully deployed the same by March 2012, in seven projects in four cities, including Pune, Delhi, Chennai and Mumbai. It had partnered developers like Darode Jog, Paranjpe Schemes and Amit Enterprises in Pune, ATS in Noida, Real Value and Mantri Developers in Chennai and Godrej Properties in Mumbai.
Amit Bhagat, CEO & MD of ASK Property Investment Advisors, said, “With this exit we have managed to return 70 per cent of the first fund to investors and are confident of completely exiting the first fund in the current financial year with excellent returns.”
“We have chalked out detailed plans of exits from some of our other investee companies over the next 6-12 months and expect to attractively reward our investors,” added Sunil Rohokale, MD & CEO, ASK Group.
The company is raising its first offshore fund with a target 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.
The company is also planning to fully deploy its second domestic fund, which has a corpus of Rs 1,000 crore, in the next two months.
ASK Group currently manages real estate assets of more than Rs 2,100 crore which include two domestic funds, an on-road offshore fund besides structured debt to back projects.
(Edited by Joby Puthuparampil Johnson)