ASK Property Fund, the real estate private equity arm of the ASK Group, on December 26, 2022, said it had exited Eldeco group’s South Delhi-located project, Eldeco Centre. The fund that had invested Rs 120 crore in Eldeco Centre. It has achieved an internal rate of return of 21%.
The project is a commercial development, comprising retail and office spaces in South Delhi.
“We identified this counter cyclical opportunity post demonetisation 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,” says Amit Bhagat, CEO & MD, ASK Property Fund.
“Excellent metro connectivity, established neighbourhood, availability of public transport and social amenities are the primary reasons for robust demand in the area. New Delhi is an established office market with total stock of more than 12 million sq. ft. and stable vacancy rate of around 10-12%, he added.
With the latest exit, ASK has made cumulative exits of Rs 1,000 crore in calendar year 2022.
“It has been an eventful year for ASK Property Fund across fund-raising, investments and exits. WE have raised approximately Rs 800 core and are targeting Rs 1,500 crore by March 2023. Out of this fund, we have already committed Rs 500 crore,” the company said in a statement.
ASK Property Investment Advisors was set up to manage and advise real estate dedicated funds. The fund is focused on private equity investments in self-liquidating mid-income and affordable residential and commercial segments. ASK PIA has raised around Rs 5,000 crore since 2009.
