Milestone exits Bangalore commercial asset at $22M

Home-grown real estate-focused private equity firm Milestone Capital has exited its investment in a commercial property in Bangalore with an exit value of Rs 150.25 crore ($22 million), the company said in a statement.

The investment was made through IL&FS Milestone Fund II, a joint investment corpus of Milestone Capital and IL&FS PE. It took exposure to the property in two phases in April 2010 and March 2012.

The asset—E-City Park-II—is located in Electronic City Phase I and houses tenants including CGI group, Terex, Defiance, British Engines, Airpush, Enhancesys, Sigma-Aldrich and Mayfair group. It is spread across 350,000 sq ft with the whole building comprising eight floors.

The company said the asset has now been divested to a high-net-worth individual (HNI) and it has clocked a multiple of 1.72 times on the investment. It did not disclose the investment amount.

Rubi Arya, executive vice chairman, Milestone Capital Advisors, said, “The asset has been earning healthy rental yields from last five years and now has been sold to a high-net-worth investor." 

“Demand is picking up in the real estate market, especially in the commercial space, and we expect the trend to continue due to better market conditions,” she added.

The rental yield funds managed by Milestone have investments of approximately Rs 1,200 crore spread across over 4 million sq ft of commercial properties.

In a recent interaction with VCCircle, Arya had mentioned that the firm is looking at divesting its stakes in four commercial assets (IT/ITeS) in Bangalore, Pune and other locations with an aim to clock an exit value of over Rs 500 crore. Indeed, the fund house has turned its focus on exits over the years and recently sealed one of its biggest exits with Blackstone acquiring 247 Park in Mumbai at an enterprise value of Rs 1,060 crore.

It 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.

In its latest deal, it has backed a residential property of Mumbai-based developer Rajesh LifeSpaces.

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