Indiareit Fund Advisors, the real estate PE arm of Piramal Enterprises, said it has made exits worth Rs 440 crore from three of its earlier funds and one from a third party mandate. This adds to the Rs 905 crore that the fund house has already returned from previous exits in earlier vintage funds and third party mandates, a statement from Indiareit said.
Khushru Jijina, Managing Partner, Indiareit, said "We felt it appropriate that we give due attention and importance to a renewed focus on exits from our 2006-7 vintage fund vehicles. We have initiated discussions with our development counterparts in order to prioritise such exits with a view towards final realisation keeping in mind the various fund tenures."
The first is a phased stake sale of an SEZ within a township project located at Hinjewadi, Pune, being developed by Paranjape Schemes. The entire SEZ has a total development potential of 2.9 million sq ft of which 1.48 million sq ft (Phase I) is currently built and leased to marquee tenants like Accenture, Cisco, L&T, Persistent, KPIT and Crisil. Indiareit had invested Rs 242 crore for a 30 per cent shareholding in the project in 2007.
The second is an investment in a residential project at Santacruz and a mixed-use project at Goregaon, both in Mumbai. Indiareit had invested Rs 150 crore across both the projects in 2008 and has so far realised Rs 117 crore with about Rs 190 crore more expected to come in within the next quarter, he said.
Further, as advisors to an offshore manager, Indiareit has been advising on the proposed exit in Forest Trails, a 3million sqft residential township at Bhugaon in Pune also being developed by Paranjape Scheme.
The offshore fund invested Rs 109 crore for a 50 per cent stake in the project in January, 2011, with the exit amount translating into an IRR (internal rate of return) of 20 per cent over the two year tenure.