Realty PE fund Sun Area exits Ekta Tripolis with 2x returns

Sun Area, a realty-focused private equity (PE) fund, has fully exited its investment from realtor Ekta World's luxurious residential project Ekta Tripolis, in Goregaon (West), Mumbai.

The PE fund (previously known as Sun Apollo) had pumped in Rs 135 crore over a period of two years i.e. between 2011 and 2013 and the investment in this real estate development has reaped almost two times returns.

According to Ekta World management, both the parties arrived at a mutually agreed valuation of Rs 256 crore on an investment of Rs 135 crore, which is a 1.9 multiple.

"Ekta World has been one of the first realty firms to give exits with handsome returns in such challenging business environment. In the recent past, we have also given exits to HDFC PMS worth Rs 312 crore on an investment of Rs 190 crore," said Ashok Mohanani, chairman and managing director, Ekta World.

Mohanani added that the company has recorded aggregated sales of over Rs 400 crore in the last few quarters which was instrumental in rewarding the PE investors in the project.

Commenting on the company's recent initiatives in the area of affordable housing, Mohanani said, "Our recent marketing campaign with HDFC Realty for affordable housing catering to home buyers keen on investing in a home in peripherals of Mumbai and Nashik has been very successful. It has helped boost overall sales and cash flows for the company," he said.