IL&FS Milestone Realty in talks to sell its stake in Mumbai project
IL&FS Milestone realty Advisors, one of the property funds is in talks with Blackstone, Morgan Stanley and GIC to seel its entire stakes in a commercial project in Mumbai.
The project is worth Rs 1,000 crore revenue and has 1.2 million sq ft of leasable space in three 14-storey towers which is fully occupied. Siemens, Future Group, DHL Lemiur and HCC are among its prominent tenants.
IL&FS Milestone is a joint venture between IL&FS Investment Managers and Milestone Capital Advisors. They had bought 74% of stakes in 247 Park, an office property from HCG Group in July 2010 at around Rs 575 crore. The deal valued the property at Rs 775 crore.
The realty adviser is in talks with several other investors for quiet a while and the deal is expected to close soon.
HCC Real Estate is a subsidiary of the HCC Group and continues to hold the remaining stake in the 1.8-million sq ft commercial property in Vikhroli.
As per close sources, the adviser has a debt of around Rs 300 crore, which will pass on to the prospective buyer as part of the deal. Of the 1.2 million sq ft space, over 0.9 million sq ft is dedicated to offices while the rest is kept for retail purpose.
Furthermore, a clause had been included in the lease agreement for space in the property which say that there will be rental escalation of about 15% every three years.
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