Milestone Capital Advisors, a real estate focused private equity firm, today said the company was planning to exit from its Kolkata assets.
"We have already divested from Godrej Prakriti and now we have initiated to exit from a building located at Salt Lake sector V," Milestone vice chairman & director, Rubi Arya said.
"Milestone had invested Rs 86 crore and its return was 2.3 times in about three years. While, we had pumped Rs 57 crore in the IT hub property which the company owns and earning rentals. We expect a total return of 1.7 times of our investment from this property which is about five year old," she said.
The FE firms was also contemplating to exit from one IT park each from Mumbai and Bangalore.
She said despite equity is making a comeback but still debt funding to real-estate prevailing strong.
"Post 2010 US meltdown impact, structured debt funding had been the norm but now with things turning better equity is making a comeback. But, our new fund Milestone Opportunities Fund 10 will remained focused at debt funding with atleast 70 per cent of the corpus," Arya said.
The PE firm had launched 3.5 years short tenure fund against 5-7 years projecting that banks might come back to fund real estate in more liberal terms than now.
"Banks are always preferred financers for real estate and we find opportunity in short term for a high-yeild for short term say 3-4 years with IRR of 22-24 per cent," Milestone ED Navin Kumar explained.
Milestone aims to raise 500 crore from this fund.
