Avenue Venture made its third investment into a project of Assetz Homes
Kotak Realty Fund is all set to sell its luxury golf villa project near Sarjapur Road in Bangalore for an undisclosed sum. This will be bought by the realty firm Assetz Homes Pvt. Ltd and real estate private equity firm Avenue Venture Partners LLP.
The project, Clover Greens, has an 18-hole operational golf course and will have 140 luxury homes priced at Rs 4 crore and above. Avenue Venture made its third investment into a project being developed by Assetz Homes.
This deal is in the nature of a “reinvestment” by Avenue Venture. This investment was done with the cash flows generated by the exit from its 2012 investment in Assetz’s East Point project in east Bangalore. Avenue exited the Assetz project this year with 62 % internal rate of return (IRR). This is considered very high in the real estate private equity scenario. Rs.21 crore was pumped in into this investment in 2012.
Avenue Venture Partners LLP was founded by former executives Akshay Dewani and Jagannath Shetty of Birla Sun Life Asset Management Co. Ltd. Akshay Dewani the chief investment officer of Avenue Venture stated that funding of the deal from the cash flows from the first exit marks a trend where an exit happened earlier. The good news is that the company could reinvest the money within the first two years and it was not sitting idle in the bank accounts.
Source- Mint
