ASK Property Fund exits Delhi-based investment, books 2.5x profit

Representative image

ASK Property Fund, the real estate private equity arm of the ASK Group, sold its investments in Eldeco Centre, a office and retail building in South Delhi.

The gross sale amount was Rs 120 crore, multiplying its investment 2.54 times and internal rate of return (IRR) stood at 21 percent, the fund house said.

“We identified this counter cyclical opportunity post demonetization and decided to capitalise on South Delhi’s robust commercial demand,” said Amit Bhagat, CEO & MD, ASK Property Fund.

“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.”

Bhagat added that 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 a total stock of more than 12 million sq. ft. and a stable vacancy rate of around 10-12 percent.

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. They’ve raised approx. Rs 800 crore and are targeting Rs 1,500 crore by March 2023. Out of this fund, they’ve already committed Rs 500 crore to various investments.

ASK Property Fund is the alternate asset investment arm of the ASK group set up to manage and advise real estate dedicated funds. The focus is on private equity investments in self-liquidating mid-income and affordable residential and commercial segments.

It has raised around Rs 5,000 crore ($800 million) since 2009 and investors include family offices, ultra high net worth individuals (UHNIs), high net worth individuals (HNIs) and institutions.