Private equity firm Milestone Capital, which has a roster of eight realty funds under management, has exited four of its early investments last month pocketing Rs 132 crore ($21.5 million), the company said on Wednesday.
The investments comprise projects in the commercial, residential and mixed use/hospitality formats.
The PE fund clocked reasonable returns from three of these projects while it recorded a modest upside from the fourth exit.
Projects & returns
The biggest of the four involves Grand Central Mall, Rajkot, a 165,000 sq ft mall that houses tenants including Westside, Cinemax, Levis & United Colors of Benetton among others.
Milestone had invested in the mall through its IL&FS Milestone Fund I, a rental yield fund chasing investment in ready pre-leased commercial assets. The PE firm exited at a value of around Rs 50 crore, generated an investment multiple of 1.53x.
It has also exited Platina, Gachibowli at Hyderabad, a mixed-use premium commercial space of 550,000 sq ft of office space and hotel in which it invested through the Milestone Domestic Scheme I. The fund exited for Rs 36 crore, at a multiple of 1.53x through capital appreciation and income distributions.
Milestone Domestic Scheme I is a $52 million PE fund formed to invest in real estate sector focusing residential and commercial projects, integrated townships and hospitality projects.
Besides these, Milestone Domestic Scheme II, a $108 million fund which seeks to invest in real estate sector in tier I and tier II cities, has exited from two of its portfolio firms.
These include two developments with Chennai's Pelican Group for project named Belfort in cities of Pondicherry & Madurai comprising affordable housing & senior living projects. The fund exited at a gross IRR of 25 per cent resulting in a multiple of 1.83x, at an exit value of Rs 37 crore from its four year old investment.
Milestone Domestic Scheme II also exited from Assa House II, a residential project in Nagpur. It had invested Rs 8.5 crore three years ago and has exited for Rs 9 crore. This was by far the most modest exit from a returns perspective.
Exits on the rise
These four adds up to make six exits for Milestone from its portfolio this year. Last month, the PE firm also recently exited its investment in Bhiwandi logistics park ACORN for $24 million (Rs 145 crore) clocking 1.5x in returns in its six year old investment.
It had previously sold its stake in Bangalore-based developer Jain Heights & Structures Pvt Ltd in a buyback transaction.
“We are extremely pleased to achieve this kind of momentum to our divestments, especially in challenging markets like Hyderabad & Rajkot. It has been a testimony to our partner selection & ability to identify the right investment opportunities, hence exit at healthy valuations. The Hyderabad divestment at a multiple of 1.53x, makes us one of the few players to conclude a profitable exit from commercial investment in Hyderabad,” said Rubi Arya, vice-chairman & director of Milestone Capital Advisors.
Recently VCCircle exclusively reported that Milestone is investing around Rs 50-60 crore ($8-10 million) in a luxury residential project located in Gurgaon by North-based developer Assotech Ltd.