Milestone to launch Rs. 500-cr fund for housing projects.

PE firm Milestone Capital Advisors Ltd., which focuses on residential and commercial projects, has launched its 10th fund that would focus on mid-size residential projects. Tata Investment Corporation is the anchor investor in the proposed Rs. 500 crore fund, which is expected to see the first close in September end with around Rs. 200 crore. The PE firm also said that it would look at launching its 11th fund, with a size of Rs. 400-500 crore.

Rubi Arya, vice chairman and director, Milestone Capital Advisors Ltd said that the fund is expecting to close the first round by end of September, with about Rs. 200 crore, while it will take another six months to raise balance money.

The Fund size would be about Rs. 500 crore, with an upsize option of another Rs. 200 crore, said Arya, adding that Tata Investment Corporation is the anchor investor of the fund.

Already six projects were identified for the proposed fund, said Alok Aggarwal, managing partner and CEO - real estate, Milestone Capital Advisors. He said 70 per cent of the fund would be towards debt and balance will be equity.

Target IRR is around 22-24 per cent in structured debt with or without equity upside and 26-28 per cent in hybrid equity structures, said Aggarwal, who noted tenure for the investor would be 3.5 years with provision for one year extension.

BS