ASK Property Fund Earns 20% Annual Return On QVC Realty Projects

Private equity player ASK Property Fund has generated a total return of Rs 354 crore on its investment in three projects of QVC Realty Developers, earning an annual rate of return of about 20%. ASK Property Fund is a real estate private equity arm of Blackstone-backed ASK Asset and Wealth Management Group.

"In 2019, we invested Rs 200 crore in three projects of QVC Realty Developers. We have successfully exited our investment at Rs 354 crore," ASK Property Fund CEO and MD Amit Bhagat told PTI.

ASK Property Fund has achieved 1.8 times multiples of capital invested with an IRR of about 20%, he added.

The investment was for a portfolio of three projects, one in Bengaluru and two in Gurugram. The two projects located in Gurugram are situated along the Dwarka Expressway, while the third project is in Nandi Hills, Bengaluru.

"We are delighted with the returns we have generated during an average investment tenure of 4 years. The healthy returns can be attributed to our selection of projects and entry point with margin of safety. Demand of villa and plotted development also picked up post pandemic and provided timely and targeted exit," Bhagat said.

ASK Property Fund is continuously focussed on identifying opportunities with investment horizon of 3-5 years coinciding with completion of the project, he said, adding that the deal pipeline is very healthy across major cities -- Delhi-NCR, Mumbai Metropolitan Region, Pune, Chennai and Bengaluru.

Sunil Rohokale, Managing Director and CEO, ASK Asset & Wealth Management Group, said, "Real estate cycle has turned around due to sustained increase in end user absorption and supply constraints. We will continue to focus on residential end user driven mid segment." Residential is a favoured asset segment world over in addition to logistics and data centres, he said.

"Active asset management continues to be our strength and differentiator. ASK Property Fund is well-positioned to bring the right investment solutions for HNIs looking to participate in the golden decade of real estate," Rohokale said.

ASK Property Fund is the alternate asset investment arm of the ASK group set up to manage and advise real estate dedicated funds.

It focuses on private equity investments in self-liquidating mid-income and affordable residential and commercial segments.

ASK Property Investment Advisors Pvt Ltd, which is the registered entity, has raised around Rs 6,100 crore since 2009 and investors include Family Offices, Ultra High Net Worth Individuals, High Net Worth Individual and institutions.