The country's first real estate investment trust (REIT) like structure promoted by IL&FS, the IL&FS - Milestone Fund-I has achieved its first closing with initial subscription of Rs 500 crore.Fund managers, however, have decided to exercise green shoe option for raising additional capital.The real estate fund has already commenced its operations and invested 13% of the funds raised and has a pipeline of investment opportunities, said V P Arya, managing partner & chief investment officer, of IL&FS-Milestone Fund-I."IL&FS-Milestone Fund-I, has created mechanism and market, whereby ready leased properties have an exit mechanism.This would go a long way in creating necessary depth in real estate market," said Shahzaad Dalal, vice chairman, IL&FS.The fund has offered a new investment option to high networh individuals and corporates alike and this has been indicated by overwhelming response from the investors. The investors are eagerly looking forward to innovative options like REITs to help diversify their portfolios without getting involved in complications of real estate market, said Arya.The minimum investment to participate in the fund was Rs 10 lakh, spread over 12 months.
