IL&FS Milestone Realty Advisors, a joint venture between Milestone Capital Advisors Pvt. Ltd. & IL&FS Investment Managers Ltd. announces a landmark investment by its real estate funds IL&FS Milestone Fund, India’s only privately held REIT structured fund., to acquire 74% stake in 247 HCC Park, a 1.8 million sqft commercial property located in Vikhroli, Mumbai making it the largest investment by a REIT structured fund in India till date. The fund has entered into a definite agreement with the affiliate company of the HCC Group to buy this stake pending legal & statutory requirements.
Valued at around Rs. 775 cr., the property is one of the most prominent commercial properties in Mumbai, 247 HCC Park is strategically located on LBS Marg, Vikhroli, making it a great asset for future appreciation. The area under investment stands at around 11 lakh sq.ft. Being India’s largest standalone LEED certified Gold rated building, the property is very efficiently designed with very high end building management systems, allowing for very efficient common area maintenance & low maintenance costs.
When contacted, Ved Prakash Arya, MD & CEO – Milestone Group stated that “in the current scenario, there is a supply overdose for all kinds of commercial properties and we were on the lookout for properties with stable rentals rather than un-naturally high rentals which can lead to artificial yield assumptions. Despite soaring interest rates, the fund has struck a great investment deal giving extremely attractive returns to investors. With stable long term tenants in place, 247 HCC Park is a state-of-the-art building designed using sustainable design philosophies. IL&FS Milestone’s in-house asset management capability is sure to bring higher value to the investment as our focus in much beyond pure financial involvement.”
As per Shahzaad Dalal, Vice Chairman – IL&FS Investment Managers Ltd., the investment into 247 HCC Park promises a great investment option for IL&FS Milestone’s investors as they receive the yield which comes from the monthly rent the fund will receive from the various tenants in the leased out premises of the park.”
Mr. Rajagopal Nogja, President – HCC Real Estate said that, “we completed ‘247Park’ on schedule incorporating highest standards and have successfully attracted very premium domestic and international tenants. Several reputed fund houses had shown keen interest in this premium development despite the turbulent investment environment and we are pleased to conclude the deal and partner with IL&FS Milestone Fund.”
IL&FS Milestone Realty Advisors Pvt. Ltd., has made 8 investments through its funds and has invested around Rs. 1800 cr into the commercial leased out property spaces so far. The other assets under management are premium commercial properties in Mumbai, Kolkata, Pune & Bangalore. The funds have successfully distributed quarterly yields to its investors over the past 9 quarters, clearly beating the market downturn seen during that period.
IL&FS Investment Managers Limited (IIML), a subsidiary of Infrastructure Leasing & Financial Services Limited (IL&FS), is one of the oldest and largest private equity fund managers in India, with over $ 2.8 bn under management. Milestone Capital Advisors Pvt. Ltd., who manages the fund along with IL&FS Investment Managers are India’s only independent fund house having assets under management of over Rs.3200 crores, with the projects being valued at over US$ 1 Billion.
About IL&FS Milestone Realty Advisors Pvt. Ltd
IL&FS Milestone Realty Advisors Pvt. Ltd. is a joint venture between Milestone Capital Advisors Pvt. Ltd. & IL&FS Investment Managers Ltd., focused on managing India’s only REIT structured private equity fund IL&FS Milestone Fund. The fund has invested into quality commercial real estate, like premium office buildings, IT/ITES buildings, warehouses etc. and derives yield through rentals received from such pre-leased properties plus capital appreciation. The company operates out of Milestone Group’s Mumbai headquarters.
You may also visit: www.milestonecapital.in
