Milestone Capital Advisors exits Godrej Properties Kolkata project for Rs 200 crore
As part of the initial investment agreement, Milestone Capital had committed to invest Rs 110 crore for a 49% stake in the project in October 2009
Nov 03, 2014
Source : The Economic Times
Housing Project

 

MUMBAI: Real estate private equity firm Milestone Capital Advisors has sold its entire stake in Godrej Properties residential project Godrej Prakriti in Kolkata for Rs 200 crore. The exit is valued at 2.3 times of the fund's earlier investment that was made five years ago, said two persons familiar with the development.

As part of the initial investment agreement, Milestone Capital had committed to invest Rs 110 crore for a 49% stake in the project in October 2009, just before the developer's initial public offering for Rs 500 crore in December 2009. However, the fund invested Rs 84 crore in the 3-million-squarefeet project of Godrej Group's real estate development arm.

This was one of the private equity firm's earliest investments through two if its development funds — Milestone Domestic Scheme I & II. "Around 2/3rd of the project, or 2 million square feet, has been completed and part of it has also been handed over to the customers...Another private equity fund has picked up Milestone's stake in this secondary transaction," said one of the persons mentioned above.

Milestone Capital confirmed the exit while adding the fund is in talks to invest in some more projects of Godrej Properties, but declined to name the buyer.

"To continue and build on this relationship, we are in discussions for further investments in other projects of Godrej Properties from our new as well as forthcoming funds. Also, we are well on track to raise our 10th fund, Milestone Opportunities Fund 10, which is also modelled on a similar structured debt format, albeit having a much shorter tenure of 3.5 years," said Rubi Arya, vice chairman & director, Milestone Capital Advisors. Godrej Properties declined to comment for the story, citing silent period ahead of its quarterly earnings on Thursday.

The project is an integrated residential community development spread over 23 acres on Barrackpore Trunk Road in Sodepur close to Rajarhat, the upcoming IT/ITeS hub in Kolkata.

Milestone has so far raised approximatelyRs 1,350 crore through its development funds.

The fund's investments are spread across 22 million square feet of commercial and residential properties, including affordable housing, premium residential, integrated townships, commercial offices, logistics and warehousing.

Through its development funds, Milestone had earlier exited from Platina, a mixed use commercial project in Hyderabad's Gachibowli at an investment multiple of 1.53 times, and Belfort, a senior living project in Pondicherry, at an investment multiple of 1.83 times.

Latest Realty News

Govt land details on official portal soon
Nov 03, 2014
HYDERABAD: The Hyderabad district administration will soon upload details of government land located in 16 mandals on its portal: www.hyderabad.telangana.gov.in
Govt to acquire over 30,000 acres for capital
Nov 03, 2014
GUNTUR: AP agriculture minister Prattipati Pulla Rao did not rule out the possibility of acquiring more than the proposed 30,000 acres land for the construction of capital city
Higher property prices swell ranks of Asia Pacific HNWIs
Nov 03, 2014
Asia Pacific will soon have more high-net-worth individuals (HNWIs) than North America with their investment in real estate being a key factor increasing their wealth
Revised OAO Act’ to provide respite for Flat owners
Nov 03, 2014
Bhubaneswar: In a breather to the thousands of lakhs of flat / apartment owners in the State, Odisha Government has proposed amendment to the age-old Odisha Apartment Ownership [OAO] Act, 1982
Realty boom eating into other sectors?
Nov 03, 2014
Vijaywada: This year’s Deepavali was perhaps one of the dullest festivals for many traders mostly attributed to the boom in real estate sector
City’s realty still attracting buyers
Nov 03, 2014
VISAKHAPATNAM: Despite Cyclone Hudhud causing widespread destruction in the Port City, realtors said prices of plots have remained stable and sales have begun picking up
PE Investment in Realty Sector Jumps Two-fold to Rs 8,900 cr
Nov 03, 2014
BANGALORE:Private Equity funding into the sector saw a two-fold jump at Rs 8,900 crore till September this year
Realty check: Kolkata to have lowest housing demand
Nov 03, 2014
KOLKATA: The city is likely to witness a slow off-take of residential units despite the state government's efforts to give a push to the sector
Odisha cabinet approves land grab ordinance proposal
Nov 03, 2014
Bhubaneswar: The Odisha cabinet approved the proposal to issue an ordinance to prevent land grab in the state
Law will take own course on Vadra: Haryana CM
Nov 03, 2014
Chandigarh: Haryana Chief Minister Manohar Lal Khattar said that law will take its own course in the controversial land deals of Robert Vadra, son-in-law of Congress president Sonia Gandhi

Latest Realty News Of State

Realty Talk's