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