Piramal Fund Management, part of the Ajay Piramal-owned Piramal Group, said on Wednesday it has entered into an agreement with Mumbai-based Omkar Realtors and Developers to exit from Mumbai luxury residential project Omkar 1973 with an internal rate of return of 24% on its investment.
The exit would translate into about Rs 500 crore for Piramal Fund. It had invested Rs 200 crore in the project between August and December 2011. Piramal had raised Rs 922 crore through Domestic Scheme IV in June 2010 and deployed across eight transactions. Of these, Rs 106 crore had already been returned from three partial exits.
The current exit from Omkar 1973, is the fund’s first full exit. It plans to fully exit from the fund by December 2016 giving returns of between 22% and 24%.
Speaking on the exit, Khushru Jijina, the managing director, Piramal Fund Management, said the company plans to continue to exit its investments in the coming months, but didn’t elaborate. “Though there is a slowdown in the realty market, we have managed to exit our investment at an internal rate of return (IRR) of 24%, which is around Rs 500 crore,” Jijina told PTI.
“We have managed to partially exit from three investments. This is our fourth one which is a complete exit. By the end of the next quarter, we will exit another project, which we expect to fetch a return of above 22%,” he said. The company has already returned Rs 106 crore from three partial exits — two of which are self development projects being carried out under the ‘Address Makers’ brand in Whitefield and Electronic City, Bengaluru and the third being interest payments received from an investment with the Marvel Group in Pune.