The platform will have an equity corpus of ₹400 crore
City-based Emerald Haven Realty Limited (TVS Emerald), the real estate arm of TVS Motor Company, has joined hands with ASK Property Investment Advisors (ASK PIA), the real estate private equity arm of ASK Group, to set up a real estate investment platform.
Under an agreement inked between the two, the joint real estate investment platform will have an equity corpus of ₹400 crore.
ASK and Emerald Haven will invest in the ratio of 49:51 in the partnership.
The partnership comes at a crucial time when there are huge opportunities and growth potential in the affordable and mid-segment real estate market.
Through this platform, the partnership also announced its first investment in the growth corridor of Porur in Chennai. The project will be developed on a 10-acre land parcel having 5,48,000 sq ft of saleable area with the equity investment of ₹ 83 crore.
The partnership also comes at a time when the policy environment in the real estate field is witnessing a significant metamorphosis following the passage of Real Estate (Regulation and Development) Act, 2016 (RERA) by Parliament. The larger objective of RERA is to usher in a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA is also intended to bring about better accountability and transparency in the real estate ecosystem.
R. Chandramouli, president and CEO, TVS Emerald, said the TVS Group had already been into housing space. He expected the partnership with ASK would give it the leeway to explore newer opportunities and expand. “Our endeavour is always to delight [the] customer by fulfilling aspirations of the urban middle class in their quest for a better living space,” he added.
Mr.Amit Bhagat, MD & CEO, ASK Property Investment Advisors (ASK PIA), said affordable and mid-segment market offered huge growth potential. This was in sync with the TVS Emerald’s core purpose of providing better living space to the urban middle class, he added. “The collaboration will leverage each other’s strength,’’ he said.
TVS Emerald has already completed and delivered one project before schedule and is currently developing five more projects in and around Chennai. TVS Emerald plans to further expand its presence in Chennai and Bangalore in the near future.
ASK Property Investment Advisors (ASK PIA) is a venture of the ASK group set up to manage and advise real estate-dedicated funds. This initiative of the group rests on the backbone of extensive investment and asset management expertise backed by strong research focus. ASK PIA raised ₹326 crore between March 2009 and December 2009. It raised second domestic fund of ₹1,000 crore in 2011 and a third domestic fund of ₹1,400 crore in 2016.
Source:-BBC
