Private equity fund ASK real estate exits ATS Project in Gurgaon at 25% IRR

NEW DELHI: Real estate private equity fund ASK Property Investment Advisors has exited a residential project of Noida-based builder ATS Infrastructures in Gurgaon at an internal rate of return or IRR of 25%. The ASK Real Estate Special Opportunities Fund had invested Rs 147 crore in ATS Tangerine in sector 99A of Gurgaon on the Dwarka Expressway in July 2013. The fund has now exited the project at Rs 270 crore. “Our first investment from the first fund was also with ATS, in Noida in ‘One Hamlet’ project which was delivered two years back.

We have invested in six transactions with ATS and have exited completely in four,” said Amit Bhagat, managing director of ASK Property Investment Advisors. He said that the group’s strategy is to stay focused on mid-sized residential projects in six metros – Mumbai, Delhi-National Capital Region, Pune, Chennai, Bengaluru and Hyderabad. ASK funds have got exits worth about Rs1,400 crore through six full and seven part exits, clocking returns in the range of 21-25% IRR.

Getamber Anand, managing director of ATS Infrastructures said that in the current market there is demand but the market is in turmoil. “But for people who are focusing on execution and are able to finish and deliver, they are selling homes even in the current market,” he said. Anand, who is also national president of industry body Confederation of Real Estate Developers Associations of India, said he is expecting a decent traction for homes sales in the coming months, especially if monsoon rains are better than expected. In 2015-16, ASK Group had invested Rs 365 crore in Rajesh Lifespaces’ Vikhroli project, Rs 125 crore in ATS’ Noida project, Rs 112 crore in Puravankara’s Chennai project and exited from three investments.