ASK Property Fund Makes Successful Exit from Co-Investment Platform
ASK Property Fund, the real estate investment arm of Blackstone-backed ASK Group, has exited its investment in a plotted development project with a 20% internal rate of return.
Real EstateInvestmentAsk Property FundBlackstoneShriram PropertiesReal Estate NewsAug 28, 2024
The investment was made in a stressed asset funding, where ASK Property Fund participated alongside Shriram Properties. The two companies invested about Rs 85 crore in the plotted development project, Shriram Pristine Estate, via their Rs 500-crore co-investment platform. The project, initially called Golden Ira, was developed by Golden Gates Group in North Bengaluru and was launched in January 2020.
According to a company statement, ASK Property Fund realized an internal rate of return of about 20% on its investment, with an MOIC (multiple on invested capital) of about 1.24x in about 18 months of investment. The typical tenure of plotted development investments is 2-3 years, much shorter than that of high-rise or apartment sales as these assets have a shorter self-liquidation period.
The co-investment platform jointly acquired the project from the lending entities of the IIFL Group, with capital commitments of up to Rs 125 crore, in December 2020. This was the platform’s maiden investment.
“This investment is a classic example of an opportunity arising from industry consolidation, as robust sales ensured a successful exit for us. This is part of our platform agreement with Shriram Properties, and we intend to participate in their expansion and growth in the near future,” said Lakshmipathi Chockalingam, managing partner - South, ASK Property Fund.
ASK Property Fund made the investment out of its investment vehicle Real Estate Special Opportunities Fund IV (RESOF IV), a Rs 1,500-crore alternative investment fund (AIF), closed in May 2020. The fund marked its final close after downsizing the corpus from Rs 2,000 crore earlier.
Information
ASK Property Fund is the real estate investment arm of Blackstone-backed ASK Group. The fund provides financing for mid and affordable residential real estate projects across key markets in India.
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $140 billion of investor capital under management. Blackstone is a leading global investment business with over $500 billion in assets under management.
Frequently Asked Questions
What is ASK Property Fund?
ASK Property Fund is the real estate investment arm of Blackstone-backed ASK Group.
What is the investment vehicle used by ASK Property Fund?
Real Estate Special Opportunities Fund IV (RESOF IV), a Rs 1,500-crore alternative investment fund (AIF)
What is the typical tenure of plotted development investments?
2-3 years
What is the MOIC (multiple on invested capital) realized by ASK Property Fund?
about 1.24x
What is the internal rate of return realized by ASK Property Fund?
about 20%
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