New Delhi: Financial services firm ASK Group has sold its 50 percent stake in Rajesh Lifespaces' housing project in Mumbai for Rs 125 crore.
In August 2011, the company had invested Rs 55 crore in this project.
ASK, a leading player in the real estate private equity business, said it has exited Raj Altezza, a project by Rajesh Lifespaces, in Mulund, Mumbai.
"The investment totaling Rs 55 crore has given a multiple of 2.26 amounting to an exit value of Rs 124.4 crore, thereby recording an impressive IRR (internal rate of return) of 26 percent," ASK Group said in a statement today.
When contacted, ASK Property Investment Advisors MD & CEO Amit Bhagat said the company had 50% stake in this project which has now been bought back by the promoter.
The investment was made from ASK Group's second fund of Rs 1,000-crore 'ASK Real Estate Special Opportunities Fund'. This the first exit from the fund.
"This year, the ASK Group had exited its Pune investments with Amit Enterprises and Paranjape Schemes, returning a multiple of 2.53 and 1.80 times, respectively," the statement read.
Bhagat said: "Our disciplined approach of investing with prudent developers has yielded returns in multiples with targeted IRRs. Both multiples and IRR are equally important to equity investors."
The group has chalked out detailed plans of exits from other investments over the next 6-12 months with targeted returns for its investors.
ASK Group, through its real estate business, manages an AUM of Rs 3,000 crore and has committed Rs 1,800 crore in 16 projects spread over 18 million sq ft in the past 18 quarters.
ASK Property Investment Advisors is a venture of the ASK Group set up to manage and advise real estate-dedicated funds.
