Milestone buys half of Pune IT park building
Private equity firm Milestone Capital Advisors has bought half of an IT park building in Kharadi business district of Pune for over Rs 160 crore. Milestone has bought the south wing of E-Park, a part of Kharadi IT Park promoted by Maharashtra Industrial Development Corporation (MIDC). The building is next to EON IT Park and all of its 2.30 lakh sq ft office space is leased to multinational companies with periodic rental escalations.
Milestone has entered this transaction with an entry yield of around 9.5% to the property. This is Milestone’s second investment through its fourth private real estate investment trust (REIT), called Milestone Commercial Advantage Fund. Milestone Commercial Advantage Fund made its first investment in June in The Capital, a commercial building in Mumbai’s Bandra-Kurla Complex. The latest investment takes the fund’s total commitment in pre-leased assets in India to Rs 200 crore.
The fund, which is backed by institutions, high networth individuals and family offices, is looking to generate a yield of close to 20% on a gross level with this investment.
Milestone Capital plans to deploy around Rs 1,000 crore in pre-leased commercial assets through Milestone Commercial Advantage Fund over the next one year. The PE player is looking to raise Rs. 700 crore equity through this fund by end of March 2018.