Home-grown real estate-focused private equity firm Milestone Capital has exited its investment in Neptune group’s Swarajya project in Mumbai with an exit value of Rs 280 crore (around $42 million).
The PE firm had invested Rs 120 crore in the project in May 2011 through Milestone Domestic Fund II and Milestone Fund LLC.
It exited the project at a 20 per cent gross internal rate of return (IRR). Financial services firm Edelweiss has provided refinancing worth Rs 185 crore to Neptune, Business Standard reported.
An email query sent to Milestone's spokesperson seeking further information on the development did not elicit any response by the time of filing this article.
“While we spotted the investment opportunity, the affordable housing segment has gained momentum in the past few years and this is just a starting stage in India,” Rubi Arya, executive vice-chairman of Milestone Capital Advisors, told the newspaper.
In March, Milestone made an exit from a commercial property in Bengaluru's Electronics City Phase I at Rs 150.25 crore, and clocked 1.72 times returns on the investment.
"Of the total Rs 3,000 crore returned to date, we have returned approximately Rs 2,000 crore back to our investors in the past 20 months itself," Arya said.
The firm has so far raised Rs 2,538 crore across multiple funds catering to residential and commercial segments and is currently raising its 10th fund with a target corpus of Rs 500 crore, with participation from domestic as well as offshore investors.
It has also lined up three investments in Mumbai and Bengaluru totalling up to Rs 200 crore from its new fund Milestone Opportunities Fund 10, Arya said.
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