Real estate-focused private equity
(PE) fund ASK Property Investment Advisors—part of the diversified
financial services firm, ASK Group—is charting its first exit since it
started deploying money in 2010.
The fund will get returns of about 2.5 times on the Rs.50 crore it invested in a residential development project in Noida by ATS Infrastructure Ltd, group chief executive Sunil Rohokale said. ASK Property made the investment in 2010.
Several PE exits are expected in fiscal 2013, particularly on investments made in realty projects in 2007, said analysts. Investors in PE firms typically seek returns on their investments in three-five years, Livemint reported.
“We have made seven investments in residential projects from our first fund, and we expect IRRs (internal rate of returns) of 30% from them,” said Rohokale.
The 14.5-acre Noida project, comprising 12 towers, will be completed in a few months. ASK will probably exit the project a few months before schedule, helped by the strong sales for it, Rohokale said.
While exits in office projects are usually in the form of buy-backs by developers or sales to third-party investors or buyers, exits in residential projects self-liquidate as sales happen.
ASK Property, which invested in the ATS project from its Rs.326-crore first fund, ASK Real Estate Special Opportunities Portfolio-1, is raising a second domestic fund of about Rs.1,000 crore. It has so far raised Rs.850 crore for it.
ASK has invested close to Rs.600 crore from its first and second funds, including the three investments it made in Mumbai and Pune this year.
Shortly, it will also begin raising its first offshore fund of $250-300 million, which it recently registered in Singapore.
As a fund, ASK Property invests in residential projects and is particular about the price band in which the apartments are sold. In Mumbai, it typically invests in projects priced at Rs.8,000-12,000 a sq.ft.
In Pune, Delhi-National Capital Region and Bangalore it invests in projects priced at Rs.4,000-6,000 a sq.ft.
In 2011, Kotak India Real Estate Fund-I sold its stake in an office building in Mumbai to a fund managed by Tata Realty and Infrastructure Ltd for Rs.385 crore on an investment of Rs.95 crore. In another exit later, Kotak sold its stake in 3C Company’s information technology park project in Noida back to the promoters, earning a return of less than 30% on its investment.
Many PE funds focused on real estate will be under pressure to show exits to investors this year as their investment cycles near an end, or find it difficult to raise fresh capital, said Amit Goenka, national director-capital transactions, Knight Frank India, a property advisory.
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The fund will get returns of about 2.5 times on the Rs.50 crore it invested in a residential development project in Noida by ATS Infrastructure Ltd, group chief executive Sunil Rohokale said. ASK Property made the investment in 2010.
Several PE exits are expected in fiscal 2013, particularly on investments made in realty projects in 2007, said analysts. Investors in PE firms typically seek returns on their investments in three-five years, Livemint reported.
“We have made seven investments in residential projects from our first fund, and we expect IRRs (internal rate of returns) of 30% from them,” said Rohokale.
The 14.5-acre Noida project, comprising 12 towers, will be completed in a few months. ASK will probably exit the project a few months before schedule, helped by the strong sales for it, Rohokale said.
While exits in office projects are usually in the form of buy-backs by developers or sales to third-party investors or buyers, exits in residential projects self-liquidate as sales happen.
ASK Property, which invested in the ATS project from its Rs.326-crore first fund, ASK Real Estate Special Opportunities Portfolio-1, is raising a second domestic fund of about Rs.1,000 crore. It has so far raised Rs.850 crore for it.
ASK has invested close to Rs.600 crore from its first and second funds, including the three investments it made in Mumbai and Pune this year.
Shortly, it will also begin raising its first offshore fund of $250-300 million, which it recently registered in Singapore.
As a fund, ASK Property invests in residential projects and is particular about the price band in which the apartments are sold. In Mumbai, it typically invests in projects priced at Rs.8,000-12,000 a sq.ft.
In Pune, Delhi-National Capital Region and Bangalore it invests in projects priced at Rs.4,000-6,000 a sq.ft.
In 2011, Kotak India Real Estate Fund-I sold its stake in an office building in Mumbai to a fund managed by Tata Realty and Infrastructure Ltd for Rs.385 crore on an investment of Rs.95 crore. In another exit later, Kotak sold its stake in 3C Company’s information technology park project in Noida back to the promoters, earning a return of less than 30% on its investment.
Many PE funds focused on real estate will be under pressure to show exits to investors this year as their investment cycles near an end, or find it difficult to raise fresh capital, said Amit Goenka, national director-capital transactions, Knight Frank India, a property advisory.
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