IL&FS, Milestone launch Rs 1,000-cr real estate fund

Mumbai: IL&FS Investment Managers Ltd and Milestone Capital Advisors have jointly launched a Rs 1,000-crore real estate investment fundon the lines of Real Estate Investment Trusts (REIT).

Addressing a press conference here on Monday, Mr Shahzaad Dalal, Vice-Chairman and Managing Director, IL&FS Investment Mangers, said the fund is targeting a corpus of Rs 1,000 crore including a geenshoe option of Rs 500 crore.

It is a close-ended scheme with a term of four years, with an option to extend the term by a year.

IL&FS –Milestone Fund-I would invest in ready properties so that it would not carry any development risk, he said.

The investors get a quarterly yield distribution as well full property appreciation on exit. “IL&FS Milestone Fund-I is the first real estate investment fund in India to offer a low minimum investment commitment of Rs.10 lakhs for individuals and Rs. one crore for corporates, “ said Mr Dalal.

The fund is expecting an annual yield of 11 per cent per cent and an IPR of 18-20 per cent with property appreciation.

“It is a risk averse fund, with moderate risk and higher returns. The Fund is set to target a wider geographical and sectoral diversification. We are investing in yield driven assets like office buildings, IT parks, hospitals, warehouses and shopping malls all across India”, said Mr Ved Prakash Arya, Managing Partners for IL&FS-Milestone Fund.

Indicative projects of The Fund include a 5 lakh sq. ft. mall at Kharagpur another 1.5lakh sq. ft. mall at Rajkot, IT buildings at Kolkata and Chennai. The Fund will be open for subscription till October 30, and is likely to be listed on the stock exchanges in three years.