ASK Group mops up Rs 1,400 crore through realty fund( 14:00, 24-Feb-16)
In one of the largest domestic fund-raising exercises for realty investments, ASK Group has mopped up nearly Rs 1,400 crore through its fourth real estate fund ASK Real Estate Special Opportunities Fund II.
The fund that was launched in October 2014 aims to invest in mid-sized self-liquidating residential projects in six major cities including Mumbai, Pune, Chennai, Bengaluru, Delhi-NCR and Hyderabad.
"We will focus on distressed valuations with margin of safety for superior risk adjusted returns. Disciplined investing with risk manager focus is a key to investing in equity. We are equity investors and there's no need for us to invest unless there's a compelling opportunity. We have demonstrated investing in growth corridors with strong regional players and have avoided any risk of zoning and entitlement," said Amit Bhagat, CEO, ASK Property Investment Advisors.
The fund — with tenure of six years and two extensions of one year each — will be providing growth capital to developers for acquiring distressed assets. The fund had achieved its initial close in March last year. "Around 60 per cent of investors in this fund are repeat investors from our earlier funds and have reposed their faith in us due to track record and developer selection. Most of these are family offices and ultra HNI investors. This is our third domestic real estate fund raised in the past seven years," said Sunil Rohokale, CEO, ASK Group.
According to Rohokale, the fund's five full and seven part exits from the first two funds in over the past four years with 25-30 per cent returns has helped in closing a large fund in 14 months.
This is the largest domestic pure equity realty fund raised in the industry in the past five years. With the closure of this fund, ASK Group's real estate private equity assets under management and advisory stand at Rs 3,500 crore.
The fund is looking to deploy this corpus fully over the next 18-24 months. "We have already committed 25 per cent of the corpus through two transactions from this new fund," said Bhagat.
ASK Group through its real estate funds has committed Rs 2,000 crore in 19 projects. On the offshore front, the ASK Group has also made an initial close of $50 million, or Rs 300 crore, for its $200 million fund
In the current financial year 2015-16, ASK Group invested Rs 365 crore in Rajesh Lifespaces' project in Vikhroli suburb of Mumbai, Rs 125 crore with ATS group in Noida project, Rs 112 crore in Purvankara Projects' Chennai unit.
In the past one year, the fund has exited from three investments including Mumbai's Rajesh Lifespaces investment with a 2.26 times returns, and its investments in Pune with Amit Enterprises and Paranjape Schemes with returns of 2.53 and 1.8 times, respectively, after investing in these projects around three years ago.
Source - Economic TimesPowered by Capital Market - Live News