BackMilestone Capital Advisors to launch Rs300 crore realty fund
The fund is looking to raise Rs300 crore with an option to raise an additional Rs200 crore in case of excess demand
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Mumbai: Indian private equity firm Milestone Capital Advisors plans to launch its new residential real estate fund in June, said a senior executive.
The fund is looking to raise Rs300 crore with an option to raise an additional Rs200 crore in case of excess demand.
“The new fund is in advanced stages of finalization and we would be looking at a possible commercial launch in the month of June," Rubi Arya, vice-chairman and director at Milestone, said in an email. “The new fund is in advanced stages of finalization and we would be looking at a possible commercial launch in the month of June." The fund will focus on on residential real estate.
Milestone manages six domestic funds and two residential funds under its umbrella with total assets under management (AUM) of Rs2,876 crore. This would be its first fund raising since its founder Ved Prakash Arya passed away in a freak accident in 2011.
The fund will be raised from domestic investors and will invest in top tier cities, including Mumbai, Bangalore, Pune, Chennai and the NCR region.
The fund is also planning to exit a number of its old investments.
“We plan to exit close to approximately Rs750 crore this year through exits both from the development funds as well as private real estate investment trust (REIT) structures. We cannot comment on specific assets and the quoted figure is on an overall fund level," Arya said.
Real estate funds in India are expected to exit close to $1.5-2 billion of investments in this financial year, said Sanjay Dutt, executive managing director, South Asia, at property consultants Cushman and Wakefield.
“...these funds need to demonstrate their exits to their existing investors before they can successfully raise fresh capital," Dutt said.
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