Milestone Capital Advisors, a private equity firm plans to raise an Rs 500 crore real estate fund, which will commence in January with a green shoe option for additional Rs 250 Crore.
After the unexpected death of its founder and CEO Ved Prakash Arya, this will be the firm’s eighth real estate fund in its total tenure of 6 years that includes two wings and the first since last two years.
In 2011, the firm accomplished its last fund-raising endeavor with a contribution of Rs 410-crore in domestic, in which it has already set out Rs. 260 Crore across seven investments under Milestone Domestic Scheme III.
Lately, Milestone has confirmed to invest Rs.65 Crore in a 14-acre project in Greater Noida for ATS Group and is also to invest around Rs.150 Crore in three projects in Bangalore and the National Capital Region (NCR).
The Milestone Domestic Scheme III is likely to concentrate on investments in commercial assets that offer steady rental yields. Rubi Arya – Vice Chairman and Director of Milestone Capital said, with the current rentals and prices being attractive in the commercial segment, rentals are likely to increase further, but the firm is yet to decide on this.
Currently, it is also observed that there are many other private equity players like JP Morgan Partners; Red Fort Capital; IL&FS Investment Manager; and ICICI Venture that have planned to raise funds or started raising funds.
Sanjay Dutt – Executive Managing Director South Asia of Cushman & Wakefield said that presently, raising fund in the domestic market seems to be successful than compared to the foreign contributions. He also added that funds with clear determination would get good response if the organization and idea goes accordingly the current investment circumstance.
Right now, Milestone Capital firm has a total assets worth 3,200 Crore, which is under management, in which around 1,500 Crore is invested on commercial assets that is extended over 3.5 million sq. ft. Recently, the firm sold its education and healthcare private equity unit to Singapore-based Quadria Capital, in which it handled around Rs.400 Crore with the joint venture of Religare.