ILFS Milestone Realty Fund-1 closes above 500 Crore

IL&FS-Milestone Fund-I, India’s first REIT like structure, has achieved first closing with its targeted initial subscription of over Rs 500 crore. The Fund has now exercised its Green shoe option of raising additional capital.

“On the Investment side, the Fund has already commenced operations, committing approximately 13 per cent of the funds raised and has a healthy pipeline of investment opportunities” said Mr Ved Prakash Arya, Managing partner and chief investment officer of IL&FS- Milestone Fund-1.

“IL&FS-Milestone Fund-I was conceived to create a mechanism and market whereby ready leased real estate assets have an exit mechanism. This would go a long way in creating depth in the real estate market. With Ved Prakash and Milestone, we believe we have a strong partner by which we can grow this concept,” said Mr Shahzaad Dalal, vice chairman, IL&FS Investment Managers Limited.

IL&FS-Milestone Fund-I, a yield-driven real estate investment alternative, has offered, for the first time in India, a structure similar to Real Estate Investment Trusts (REIT). Internationally, REIT’s are the most popular investment route for corporates and individuals to invest in real estate. The minimum investment amount of Rs 10 lakh (spread over 12 months) has been very well received.

“The strong response to the Fund from individuals and corporates alike, indicates that investors are now eagerly looking at innovative structures similar to REITs to help them diversify their portfolios without the complication of investing in real estate directly. Milestone plans to structure more products to provide innovative investment avenues to retail households going forward”, said Mr Arya.