Milestone plans to invest Rs 200cr in Gujarat

Explores opportunities to invest in real estate projects.

Asset management company, Milestone Capital Advisors Private Limited, plans to invest over Rs 200 crore in commercial and residential projects in the state.

While the company has already invested in projects in Ahmedabad and Rajkot through its investment products like Milestone Domestic Real Estate Development Fund and IL & FS Milestone Fund-I, it is exploring opportunities to invest in real estate projects in other cities like Vadodara and Surat.

Aimed primarily at tier II and tier III cities, Milestone Domestic Fund invests in upcoming residential and commercial projects, while IL & FS Milestone Fund-I, a yield-driven real estate investment alternative, normally invests in developed and rented commercial projects.

"Under the IL & FS Milestone Fund-I, the company typically invests in projects with a yield of 13 per cent and above. Our primary focus is on projects like warehousing, offices, IT & ITeS buildings, hotels, hospitals and shopping malls," said Ved Prakash Arya, managing director, Milestone Capital Advisors.

Of the several financial products, IL & FS Milestone Fund-I is the country's first Real Estate Investment Trust (REIT)-like structure with a subscription of Rs 500 crore. The company has raised Rs 250 crore through Milestone Domestic Real Estate Development Fund, Arya said. Around 15 per cent and 40 per cent of both the funds respectively are committed in projects across the country.

The Milestone group, which has Rs 1,000 crore assets under its management, is also planning to launch an international fund for which it is in talks with some players for a joint venture, Arya said. The group operates in states like Gujarat, Maharashtra, Kerala, Karnataka, Tamil Nadu and Andhra Pradesh.