Milestone Capital exits investment in Bhiwandi warehouse ACORN for $24M

Private equity firm Milestone Capital Advisors has 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, the company said in a statement.

ACORN is a 1.1 million sq ft commercial asset that houses tenants that include TESCO, Flipkart, DAMCO and Uniworld.

The company had invested in the commercial property back in 2008 through IL&FS Milestone Fund I, a rental yield fund chasing investment in ready pre-leased commercial assets. The PE firm had previously exited Cerebrum B-2, a commercial property in Pune at an investment multiple of 1.83x, from the same fund.

Rubi Arya, vice chairman & director, Milestone Capital Advisors, said, “After holding on to this prime asset for more than 6 years and having earned a rental escalation through this period, the asset has generated a multiple of 1.5x on divestment.”

This marks second exit for Milestone Capital this year and third over the past 12 months. It had previously sold its stake in Bangalore-based developer Jain Heights & Structures Pvt Ltd in a buyback transaction.

The divestment is in line with the focus of the company. In the last two years, it has focused on returning money to its investors from its earlier funds.

“We are working on seven-eight exits across properties in Mumbai, Kolkata and Bengaluru. By the end of this financial year, we are aiming to pay back Rs 750 crore to investors,” Navin Kumar, executive director, Milestone had told VCCircle a couple of months ago.

The rental yield funds managed by Milestone cover investments of around Rs 1,200 crore over 4 million sq.ft. of prime commercial properties. Commercial properties managed by the fund include Millenium Tower I (Kolkata), Grand Central Mall (Rajkot), ACORN Warehouses and Logistics Parks Dharuhera (NCR), Universal Business Park Andheri (Mumbai), E-City Park II (Bangalore), Patel Corporate Park Jogeshwari (Mumbai), 247 Park Vikhroli (Mumbai), Down Town Centre Erandwane (Pune).

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