ASK Property Investment Advisors (ASK PIA), which cut its target for a new realty fund as it hit the first close earlier this year, said Monday it has struck another exit taking its total liquidity move above the Rs 1,000-crore mark.
The investment firm has exited Eldeco Centre, harvesting Rs 120 crore with a multiple of 2.54x and internal rate of return of 21%. The project is a commercial development comprising retail and office spaces in South Delhi.
Amit Bhagat, CEO and MD, ASK Property Fund, said, “We identified this counter-cyclical opportunity post demonetization and decided to capitalise on South Delhi’s robust commercial demand. The healthy returns are the outcome of entry point, asset, and partner selection. In a supply-constrained market, the acquisition of city-centre built to lease commercial development provided a rewarding exit.”
With the latest exit, ASK has made cumulative exits of Rs 1,000 crore in calendar year 2022. It has also raised about Rs 800 crore enroute a target of Rs 1,500 crore by March 2023. Out of this fund, it has already committed Rs 500 crore.
Recently, it exited Gulshan Homz project, Gulshan Dynasty, in Noida, near New Delhi. The exit amount was Rs 220 crore, generating a multiple of 1.63x and IRR of 21%. The exit was self-liquidating with periodic distributions from sales and collection of the project.
ASK PIA is the alternative asset investment arm of the ASK group set up to manage and advise real estate dedicated funds. It is focused on private equity investments in self-liquidating mid-income and affordable residential and commercial segments.
It has raised around Rs 5,000 crore since 2009 and investors include family offices, ultra-high net worth individuals (UHNI), high net worth individuals (HNI) and institutions.
The investment firm had floated ASK Real Estate Special Opportunities Fund–IV in July 2021. This is the sixth real estate fund by the firm.
It marked the first close at Rs 610 crore ($80 million), lower than its original target after seeing the milestone get stretched.
ASK group manages assets over Rs 79,500 crore ($9.8 billion) as on November 30, 2022.