Real estate fund manager Milestone Capital has raised Rs 150 crore for its Rs 500-crore fund from high networth individuals (HNIs) and insurance companies. Milestone plans to raise the remaining amount in the next six months. The fund was launched in January last year. Titled Milestone Opportunities Fund 10, it will have a tenure of three-and-a-half years and will do structured debt and equity deals. “We have raised commitments towards our new fund Milestone Opportunities Fund 10 to the tune of Rs 150 crore. We have been able to raise this amount from a combination of ultra HNI investors as well as institutions like one of India’s largest insurance companies, a few private trusts, corporates and family offices,” said Rubi Arya, vice chairman, Milestone Capital Advisors. Arya also said Milestone was in the process of finalising an overseas fund on the lines of structured debt, with focus on residential and core assets. “We are also focusing on exiting the remaining investments across all our funds and have planned over Rs 700 crore of exits in the next 12 months,” Arya added. Milestone raises Rs 150 crore, to launch offshore fund The fund manager has also received approvals from the investment committee to invest in four additional projects, all mid-segment residential projects in the National Capital Region, Chennai and Mumbai, with investments ranging from Rs 40-100 crore. In Gurgaon, Milestone is planning to invest Rs 100 crore in a housing project, where the land owner has entered in a joint development with a national developer. In Chennai, it plans to co-invest Rs 20 crore in Taramani, a micro-market providing good sales traction, along with an NBFC. In Mumbai, it would invest Rs 40 crore in a project at Kandivili West and Rs 65 crore in a prime location at Khargar, Navi Mumbai, with a local developer. Despite the dull real estate market, many home-grown fund managers have raised real estate funds in the recent past. According to reports, the real estate arm of Motilal Oswal Private Equity has raised Rs 500 crore for its India Realty Excellence Fund III. India Property Advisors (IPAL) floated by former Indiareit managing director Ramesh Jogani too had raised Rs 175 crore late last year. The fund will invest in under-construction projects. “Most of the fund managers have raised funds through their own distribution networks. It is far more easier for them to raise funds than individual-led fund managers,” Jogani said.
Source: Business-StandardMilestone raises Rs 150 crore, to launch offshore fund
Industry: Realty 2016-02-18