Avenue Venture Partners exits Assetz’s project Marq with 33% IRR

Real estate-focused private equity firm Avenue Venture Partners has exited its two-year-old investment in a project of Singapore-headquartered realtor Assetz Property, the company said in statement.

The fund has exited a residential project located in East Bangalore, which forms part of a 25 acre mixed use development called Marq.

The fund has realised 33 per cent internal rate of return (IRR) in less than two years through this exit, the company said.

Speaking to VCCircle, Jagannath Shetty, chief executive officer, Avenue Venture Partners, said, "We had invested in the residential part of the project and it has given us a multiple of 1.73x in a span of two years." The fund has received an exit value of Rs 38 crore on it investment.

Avenue has invested in three projects of Assetz so far, where it has put in a total of roughly Rs 60 crore. This is the second exit of the firm from its investments.

Avenue had invested Rs 22.2 crore in the project back in March, 2013 through equity route. Set up by Jagannath Shetty and Akshay Dewani, former executives of Birla Sun Life Asset Management Co., Avenue Venture ties up with developers at the land acquisition level and deploys capital in the range of up to $10 million with $5 million being the average ticket size.

It prefers small projects which can be completed in three-four years.

The fund has exhausted its first fund and is raising its second fund which has a target corpus of Rs 500 crore. Its last investment was in a project by Chennai-based developer Casa Grande where it put in roughly Rs 25 crore ($4.2 million).

Assetz has seen through 10 private equity investments and given eight exits including two part-exits to date. Its other investors include JLL Segregated Funds Group and Amplus Capital.

Recently, it raised Rs 720 crore ($116 million) from Asia-focused investment firm Equis Funds Group for infrastructure development of its mid-income housing projects.

(Edited by Joby Puthuparampil Johnson)

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