NEW DELHI: Financial services group ASK has invested Rs 125 crore more in Noida-based builder ATS Group's 20-acre Le-Grandiose project in Sector 150, Noida, taking its total investment in the project to Rs 252 crore.
ASK group's offshore fund had invested Rs 127 crore in July 2014 in the project that has a total saleable area of 1.7 million sq ft. This is the third project where ASK has partnered with ATS through the real estate private equity route. ATS is selling mid-income housing in this project that will be completed in 2018.
This latest fund infusion in the ATS project is the eighth investment from ASK's second real estate fund, ASK Real Estate Special Opportunity Fund.
"Noida has emerged as a preferred destination in the past few years due its strategic location and proximity to important centres of the city. We have also focused on Noida expressway due to excellent infrastructure and proximity to job market. This investment also fits perfectly in our strategy to invest in top five cities and in mid-segment residential housing projects," said Amit Bhagat, CEO and MD, ASK Property Investment Advisors.
Sunil Rohokale, CEO and MD, ASK Group said that ASK's constant endeavour is to partner with prudent and reputed developers having a good track record.
"We are strengthening our partnership with ATS Group with this investment and are confident of deriving superior value for our investors. Our confidence in ATS Group stems from the fact that ATS is able to fetch premium due to its reputation, superior execution capabilities, its delivery track record and post-delivery maintenance. We will continue with similar prudence and risk management framework while selecting investments for our other funds to provide superior risk adjusted returns to our investors," he said.
Getamber Anand, managing director of ATS group said that his company is aggressive on housing and will raise more funding for its different projects.
"There is a big opportunity in the mid-income housing segment. Even if 90% of the 6 crore homes that are required are in the low income category, there is still 10%, which is 60 lakh homes, required in the mid-income segment," Anand said.
In this calendar year, ASK group said it has invested Rs 112 crore in Purvankara's Bengaluru project and has exited from three investments while garnering an impressive multiple. The group exited an investment with Mumbai's Rajesh Lifespaces with a multiple of 2.26 in over three years and its investments in Pune with Amit Enterprises and Paranjape with a multiple of 2.53 (over 3 years) and 1.80 times (in less than 3 years) respectively.