ASK Property Investment Advisors, the actual property funding arm of economic services employer ASK Group, has invested Rs 350 crore ($50 million) in a gaggle of initiatives of Pune-primarily based real property builders it said in a declaration. The real property funding firm has invested Rs 275 crore and a few other Rs 75 crore within the residential and business projects of Paranjape and Naiknavare businesses, respectively, the statement introduced. This is the realty company’s 1/three funding in Paranjape and second in Naiknavare.
“All these investments are in initiatives placed in the suburbs with proximity to task markets and get right of entry to social and physical infrastructure. Our approach is to recapitalize/deleverage tasks of builders who are purchaser centric with attention on the product, superb and well-timed very last contact,” Amit Bhagat, coping with director and chief govt officer of ASK Property Investment Advisors, stated in the announcement.
In March this 12 months, ASK Property Investment Advisors invested Rs 326 crore ($47 million) within QVC Realty Developers, Tridhaatu Realty, and TVS Emerald’s part of the TVS Group. “We have finished multiple offers inside the remaining six months. Through our price range, we intend to offer our developer partners with affected individual capital, thereby allowing them in mission finishing touch, driving income, generating higher cash flows, and growing profitability,” Sunil Rohokale, MD and CEO of the ASK Group, stated in the announcement.
These investments occur at a time even as developers during the united states are going through a huge liquidity crunch. For the long term, developers typically depended on non-banking finance companies for financing and refinancing; however, the scenario changed after the IL&FS fiasco. The liquidity hassle gives a superb possibility for personal fairness firms to take advantage of the lending hole and deploy capital.
In 2017, ASK Group had one after the alternative announced that ASK Property Investment Advisors and TVS Emerald Haven Realty Ltd had partnered every other to installation an Rs four hundred-crore real property investment platform centered on mid-profits housing and less high-priced housing. ASK Group is running on its initial public offering and is anticipated to get listed quickly. It gives offerings throughout wealth advisory and multi-own family workplace service and portfolio control offerings – real belongings and private fairness.
In real property investments, ASK Group invested in a group of obligations of southern actual assets developer Shriram Properties and created a platform with the developer. The group had additionally sponsored an enterprise project of ATS Group, marking its first investment inside the commercial enterprise location. ASK Property Investment Advisors raised its first home fund of Rs 326 crore beneath tough marketplace situations from March 2009 to December 2009. It raised a second home fund of Rs 1,000 crore in 2011 and a 3rd home fund of Rs 1,4 hundred crores in 2016.
ASK Group has additionally raised Rs 500 crore ($80 two million) for its maiden offshore fund. Moreover, the organization has raised a debt of over Rs 575 crore for some of the maximum reputed and financially prudent builders, which might be completely prepaid. In March 2018, it introduced the very last year for its structured equity fund of Rs 898 crore. A bankruptcy court docket has ordered the liquidation of debt-encumbered ABG Shipyard Ltd after creditors rejected an offer using the sole bidder Liberty House.
The development comes nearly years after the Reserve Bank of India asked creditors to provoke financial ruin decision proceedings in opposition to ABG Shipyard and 11 different organizations beneath the Insolvency and Bankruptcy Code (IBC). The National Company Law Tribunal (NCLT) despatched the corporation into liquidation on April 25, ABG Shipyard stated in an inventory-exchange submitting on Wednesday.
ABG Shipyard is the second shipbuilder to be sent to liquidation after Bharati Defence and Infrastructure Ltd in January this year. The Mumbai-based enterprise stated that its Committee of Creditors (CoC) had formerly cited that the offer through Liberty House in two rounds no longer fulfilled all the creditors’ repayment necessities and changed into tons below the liquidation value.
A person acquainted with the matter advised VCCircle that the UK-based Liberty House didn’t show its ability to fund several transaction bills. “There were sets of plans; however, each did no longer fetch something to creditors,” the character said, asking no longer to be named. ABG Shipyard’s liquidation price became pegged around Rs 2,2 hundred crores. Liberty House claimed that it presented a sum better than the agency’s liquidation price and advised the tribunal to entertain its bid.
The UK-based institution, which has enterprise interests in metallic, financial services, and auto parts sectors, had presented Rs 5,2 hundred crores on a deferred foundation stretching over 5 to 10 years. The bid additionally blanketed advance quantity of Rs four hundred crores and the issue of debentures. Apart from Liberty House, Shapoorji Pallonji Group and Mahindra Group had evinced interest in ABG Shipyard but no longer made any company offer.
The shipbuilder owes a general debt of greater than Rs 16,000 crore to 22 banks led by ICICI Bank.
After failing to restructure the debt, the enterprise was taken to the insolvency courtroom at the RBI’s instructions in 2017. On 20 February 2019, the CoC decided to liquidate the company and authorized the resolution professional Sundaresh Bhat to record an application earlier than the Ahmedabad bench of the NCLT. ABG Shipyard informed the inventory exchanges.