PE Company Milestone Capital sells Rs 145-crore Pune property to HNI
PE firm Milestone Capital has sold a 2.5 lakh sq ft commercial property in Pune for about Rs 145 crore to a high-net-worth individual (HNI). This deal marks a potential renewal of interest among such investors in assets that provides constant rental return in addition to capital appreciation.
The office building in Kalyani Nagar was one of the Milestones’ first investmentsthrough its rental income fund IL&FS Milestone Fund I in 2008. It recently houses tenants like Reliance Communications, Standard Chartered and Vodafone.
Ms. Rubi Arya, director and vice chairman of Milestone Capital Advisors, says that consisting of quarterly rental income and capital appreciation, their investment in property has provided 1.83 times returns. They have managed to get a good exit mainly in a recessionary market.
The company did not tell the name of the buyer. The deal comes between sluggishness in commercial property market that is making it difficult for some early investors of commercial properties to find an exit with good outcomes.
IL&FS Milestone Fund I which is one of India’s first REIT (real estate investment trust) like structures and had earlier exited from another commercial property, Raheja Titanium at Jogeshwari in Mumbai. Many PE players that had hurriedly invested invested in Indian property market following the trend of foreign direct investment (FDI) in the sector, are stuck with their investments.
Milestone manages three rental incomes consisting of IL&FS Milestone Fund I, II and IL&FS Milestone Core plus Retail Fund LLC. The company manages 7 real estate funds including a REIT-like structure, bullion products and portfolio management systems.
Out of its complete portfolio spread over 25 million sq ft, mile stone’s rental yield fund have invested in 4 million sq ft of prime commercial properties consisting of offices, IT & ITeS parks and logistic & warehousing, and valued at over Rs 1,400 crore.
All these funds are disturbing rental income for 24 quarter and are also looking at exits chances.
Source: The Economic Times
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