ASK’s realty fund exits two Pune residential projects

MUMBAI: ASK Property Investment Advisors has exited two Pune residential projects with a more than twofold return on the Rs 70 crore it invested three years ago.

The ASK Group’s real-estate fund had invested 30 crore in an Amit Enterprises project at Baner and Rs 40 crore in Paranjape Scheme’s property at Model Colony through ASK Real Estate Special Opportunities Portfolio 1. The investment in Amit Enterprises’ Serano project returned more than two-and-half times at Rs 75 crore at exit. The investment in Paranjape’s premium residential project Skyone fetched Rs 72 crore, a return of 1.8 times.

“Our strategy of partnering with strong regional brands, active asset, cash-flow management and effective sales plan has enabled us fetch solid returns," said Sunil Rohokale, managing director and chief executive of the ASK Group. “Apart from this, clear focus on middle-income housing projects in dynamic markets like Mumbai, Delhi, Bengaluru, Pune and Chennai has proved good for our investments.”

The ASK fund has exited the investments at a time when realty developers across the country are facing slow sales and tight liquidity scenario. Private-equity players have been struggling to exit investment in real-estate projects for two years now, because of the slowdown in the sector, both in terms of sales and project execution, as well as currency volatility.

Industry experts now hope that a stable government at the Centre and consistent policy framework will result in better investor confidence in India’s real estate sector.

ASK Property Investment Advisors had raised Rs 317 crore through its first real-estate fund, ASK Real Estate Special Opportunities Portfolio 1, in December 2009. This fund has been deployed through seven investments, four of which have now been exited. It is expected to exit the remaining three, including a Godrej Properties project in Mumbai’s Chembur suburb, over the next 6-12 months.

The ASK group manages assets worth around $2.5 billion (Rs 15,675 crore) including the Rs 3,000 crore real-estate portfolio of ASK Property Investment Advisors. ASK Property Investment Advisors has committed Rs 1,800 crore in 16 projects spread over 18 million sq ft over the past four years.