S’pore’s As­setz Prop­erty, Av­enue Ven­ture Tie Up for Fund Mgmt

The Economic Times - - Companies: Pursuit Of Profit - So­bia.Khan@ times­group.com

Ben­galuru: Sin­ga­pore-head­quar­tered real es­tate firm As­setz Prop­erty Group has en­tered into a strate­gic al­liance with pri­vate equity fund Av­enue Ven­ture Part­ners to foray into the fund man­age­ment busi­ness. The new ver­ti­cal, called As­setz Fund Man­age­ment, will give As­setz the ca­pa­bil­ity to in­vest third-party cap­i­tal with other devel­op­ers across re­gions, giv­ing its in­vestors a di­ver­si­fied in­vest­ment strat­egy, said Ak­shay De­wani, chief in­vest­ment of­fi­cer at Av­enue Ven­ture Part­ners. “To­day, in­vestors are look­ing for a com­bined ca­pa­bil­ity of fund and de­vel­op­ment man­age­ment. The strate­gic al­liance will ex­em­plify the com­ing to­gether of com­ple­men­tary busi­nesses,” De­wani said. Av­enue Ven­ture will lend its ex­per­tise to the fund man­age­ment busi­ness, and to­gether build the ware­hous­ing and com­mer­cial de­vel­op­ment busi­ness, while go­ing in for a sec­ond fund raise in the res­i­den­tial plat­form. “This syn­ergy will add sig­nif­i­cantly to the struc­ture of the or­gan­i­sa­tion by bring­ing fo­cus and sub­ject-mat­ter ex­per­tise, ex­pe­dit­ing the over­all busi­ness,” said De­wani.

Av­enue Ven­ture’s as­sets un­der man­age­ment stand at $50 mil­lion. It plans to raise an­other $100 mil­lion res­i­den­tial fund in the next 12 months, De­wani said. The real es­tate-fo­cused fund has in­vested in 10 projects so far and ex­ited four. It has re­alised 49% pre-tax in­ter­nal rate of re­turn.

Un­der the new ar­range­ment, As­setz will raise com­mer­cial and ware­house funds of $100 mil­lion each over the next 12-18 months un­der As­setz Fund Man­age­ment.

New ver­ti­cal to give As­setz ca­pa­bil­ity to in­vest third-party cap­i­tal with other devel­op­ers across re­gions

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