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Private Equity (PE) firm Milestone Capital Advisors, which mainly invests in real estate sector plans to raise Rs 80-100 crore from Gujarat for its Rs 500 crore structured debt fund Milestone Opportunities Fund 10. It has already raised about Rs 170 crore till date and in the next 6-8 months aims to raise the full fund size for the close-ended fund.
“We want to close the first round of raising fund by end of this month with around Rs 230 crore. Rest we plan to raise in next 6-8 months,” said Navin Kumar, executive director of Milestone Capital Advisors.
“Of the total Rs 500 crore fund we expect to generate Rs 80-100 crore from our investors in Gujarat,” he added. Of the over 16,500 investors of Milestone, about 5,000 are from Gujarat who have been regularly investing in the funds floated by the PE firm. According to Kumar, people from Gujarat have been regularly investing in their funds. Their contributions form nearly 10 per cent of the total Rs 3,700 crore assets under management of the firm.
The firm’s Milestone Opportunities Fund 10 will be investing in real estate projects of five metro cities—NCR, Mumbai, Chennai, Bangalore and Pune. Among the projects in which the fund will be investing include ATS Noida, Sheth Developers Mumbai and Assotech in Gurgaon.
“We will be investing particularly in mid-sized residential apartments for middle income groups. These groups vary according to cities,” Kumar said. For example, in Chennai a mid-size apartment would range from Rs 40-50 lakh, while for Mumbai it could be Rs 80 lakh to Rs 1 crore, he explained.
The fund aims to generate return (IRR) upwards of 22-24 per cent through a combination of structured debt and equity.
“The Milestone Opportunities Fund 10 will offer its investors the unique opportunity of diversifying his portfolio into strategically identified residential developments across fast growing micro-markets in top metro cities,” said Rubi Arya, Vice Chairman & Director, Milestone Capital Advisors.
Formed in 2007, the Mumbai-based Milestone Capital Advisors manages eight private equity funds, including India's first REIT (real estate investment trust) like structures as well as bullion products apart from portfolio management systems.
