Tuesday, June 12, 2012: 12:24:11 PM

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ICICI Prudential moves out of KUL Ecoloch

The association has been mutually beneficial for both the companies as they part their ways after the successful completion of the project

ICICI Prudential, an asset management firm which also has its own real estate portfolio management service (PMS), has announced that the company will be pulling out of the township project KUL Ecoloch based in the city of Pune.

 
Prudential PMS real estate portfolio had invested a huge amount of Rs 47.5 crore in the project that included construction of the Rs 105-crore integrated township in the city in partnership with Kumar Urban Development (KUL).
 
Company speaks
 
In an official statement released by ICICI Prudential, the company said that it would be pulling out of the project. The statement also revealed that the investment helped to generate a gross internal rate of return of about 27%.    
 
According to the AMC head of ICICI Prudential, the company believes that there is a huge potential for growth in the realty sector and the sector is synchronous with the country’s growth. The sector is also looking to provide opportunity to investors to participate in the asset class. He added that the investment in the project and successful exit from it is a clear reflection that there is huge return potential in this segment and the strength of the company’s investment process has helped tremendously in accomplishing this goal.
 
Representatives from KUL feel that the relationship has been mutually beneficial with the venture beginning with ICICI Prudential beginning their partnership at the land acquisition stage and moving out only after the launch of the project has been successfully completed.
 
ICICI Prudential PMS real estate portfolio has been in the process of managing capital commitments worth Rs 750 crore since its inception. The company has also been involved in 14 investments across the city of Mumbai, Bengaluru, Chennai, Pune and the National Capital Region.
 
The company had in 2010 made its first exit by coming out of its investment commitment in the DS Kulkarni Developers’ Project based in Bengaluru. The deal level between the two companies came up to about 22%.
 
Sambuddha Sengupta

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