ICICI Prudential PMS exit KUL Ecoloch with increased ROI
After receiving an internal rate of return upto 27% on Rs 47.5 crore’s investment in KUL Ecoloch by Kumar Builders, ICICI Prudential PMS Real Estate Portfolio has finally sold its investments. The latter invested its resources in Ecoloch in mid of financial year 2010.
KUL Ecoloch is an integrated township which is spread over 105 acre of land in Pune and developed by ancillary unit of Kumar Builders, which is renowned as River View Properties Pvt. Ltd.
ICICI has likewise invested funding worth Rs 700 crore in numerous projects across Bangalore, Chennai, Mumbai, National Capital Region and Pune.
ICICI Prudential Asset Management Co. Limited’s real estate head, Rahul Rai takes care of real estate portfolio of ICICI. The head clarified that they are in the last phase of operation and they will soon invest another round of Rs 50 crore in Kumar Builders’ project.
He mentioned in a statement that ICICI Prudential PMS is looking for such opportunities to invest with developers who are developing projects on continuous basis. He also specified that the financial expert will target those developers and their projects which it believes, may generate superior risk-adjusted returns in future.
The joint venture of ICICI Bank Ltd and UK based financial service provider, Prudential Plc- ICICI Prudential AMC invested in KUL Ecoloch a few years back. ICICI Prudential AMC also provides product management services (PMS) to organisations in need.
In last 18 months ICICI Prudential PMS has majorly invested in residential projects in their advanced stage of development in order to avoid the risk of delay in project approvals. One of those investments by ICICI Prudential PMS was made in KUL Ecoloch, by Kumar Builders, when it was in land acquisition stage.
Managing Director and Chief Executive of Kumar Builders, Lalit Kumar Jain mentioned that it has been a mutually beneficial relationship, where ICICI Prudential Real Estate Portfolio had invested in KUL Ecoloch at an early stage of land acquisition. Now ICICI is making an exit with superior equity returns on successful launch of this integrated township, KUL Ecoloch.