India Infoline Finance Ltd (IIFL) has exited a residential project of Mumbai-based Ceear Realty, the developer said on Monday.
IIFL had invested Rs 20 crore through its PE fund—IIFL Real Estate Fund Domestic Series 2–in the project Primo last year. It recorded around 24% internal rate of return (IRR) from the exit, Ceear Realty said in a statement.
Launched in April 2016, Primo is a single-tower project with one-, two- and three-bedroom apartments. The project recently received construction finance and working capital loans from private-sector lender HDFC Bank Ltd.
“We not only conceived but also received approvals for this project in record time and were able to capitalize on this through sales velocity to knock off 20% of the stock,†said Cherag Ramakrishnan, founder and managing editor, Ceear Realty.
Balaji Raghavan, who heads the real estate practice at IIFL, said that this is the financial services firm’s second exit from a project of Ceear Realty.
Ceear Realty also has presence in Bengaluru and focuses on residential projects. It plans to develop Grade A projects in Bengaluru, Pune, and Mumbai.
Exits are a crucial part in the investment cycle of private equity firms, which can sell their stakes either in secondary transactions or back to the companies. The track record of a PE firm in terms of exits and internal rate of return help them in raising further capital from their limited partners, or investors.
Some PE firms which have sold their investments in the Mumbai realty market include BlackSoil Realty Fund, which offloaded its stake in Sheth Developers, and HDFC Property Fund, which exited its investments in a project of Lodha Group.
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