Private equity firm Milestone Capital Advisors has exited from two real estate projects, including one partial exit from a residential project in Chennai and a full exit from a rental yield project in Mumbai. The first one, Stone Arc at Thiruvanmiyur, Chennai, is a residential project completed by Remaniyam Group.
MDS-1, the first real estate fund raised by Milestone, made the investment and the fund has received a return of 2.04 times of investment, Milestone real estate Managing Partner Ashish Joshi told VCCircle.
The fund owned 26,800 sq ft saleable area in that project. The second exit was done by IL&FS Milestone Fund I, the first REIT like fund of the country, which sold its 29,490 sq ft area in
Commercial property Raheja Titanium in Mumbai. The fund has got a return of 1.51 times on investment, Joshi said.
According to property consultants Jones Lang LaSalle Meghraj, Raheja Titanium has a sale value of Rs 14,000 per sq ft in the present market conditions. Recently, MDS 1 has profitably exited some of its investments, partially/fully. The scheme has distributed around 17% of the corpus, along with appreciation on this capital, in the third year of the 5-year fund life.
“In the last quarter, we have invested in 3 residential projects in Chennai and Mumbai as a part of our portfolio for Milestone Domestic Scheme II (MDS II). We are also in the process of negotiation and
closing two other opportunities to completely utilize the fund corpus,” a company spokesperson said.
VCCircle has recently reported that Milestone is in the process of raising another Rs 500 crore domestic fund MDS -3, to explore significant opportunities in the real estate sector in the top cities in India.
The two domestic schemes, MDS-I and MDS-II, have a committed corpus of Rs 229 crore and Rs 503 crore, respectively, while Milestone Fund LLC, the offshore fund, has a committed corpus of $82 million (Rs 380 crore).
The domestic funds have invested in over seven projects in Chennai, one each in Hyderabad, Jaipur and Kolkota, four in Nagpur and three logistics parks including the ones in Biwandi (Maharashtra) and Ahmedabad. According to a Milestone spokesperson, the IL&FS Milestone Fund I is in advanced stages of selling its investment in Millennium City Kolkata, where it owns over 94,000 sq ft saleable area.
IL&FS Milestone Fund I is owned by IL&FS Milestone Realty Advisors Ltd, a joint venture for real estate rental-yield projects with IL&FS Investment Managers, the only listed private equity player in India.
Milestone holds a 40% stake in the JV, which has picked up a 74% stake in 247 HCC Park, a 1.8 million square feet commercial property located in Vikhroli in Mumbai at around Rs 575 crore.