Return to search

Milestone exits logistics park investment

The Mumbai-based private equity firm has made its fourth exit from its first rental yield fund. 

Mumbai-based private equity firm Milestone Capital Advisors has sold a logistics park located on the outskirts of Mumbai for 1.45 billion rupees ($24 million; €18.19 million)

The 1.1 million-square-foot Acorn logistics park was acquired by Milestone in 2008 through its rental yield fund, IL&FS Milestone Fund I, which invests in pre-leased commercial assets. Tesco, Damco and Indian e-commerce player Flipkart are some of the tenants of the park.

“After holding on to this prime asset for more than six years and having earned a rental escalation through this period, the asset has generated a multiple of 1.5x on divestment,” said Rubi Arya, vice chairman and director at Milestone, in a statement announcing the deal.

Following the deal, Milestone has exited approximately 4 billion rupees worth of investment from the fund, which raised 5 billion rupees in its final close in 2008.

Afaque Ahmed, partner for real estate investments at Milestone, told PERE that the fund also is in talks to sell its stake in 247 HCC park, a commercial complex in Mumbai worth 10 billion rupees. The Blackstone Group is said to be among the bidders for that property.

Milestone manages three rental yield funds, which cover 12 billion rupees of investment in more than four million square feet of prime commercial properties, including offices, IT parks, logistics and warehousing. The firm’s fourth domestic blind-pool fund, launched with a target of 5 billion rupees, is likely to have its first close by November .