Milestone Capital launches Milestone Domestic Scheme II

Milestone capital advisors limited has announced a new development fund named Milestone Domestic Scheme II in response to the huge market demand for such products. Prospectus indicates that the investment focus will be on Tier II and Tier III cities which are relatively untapped markets and hence have good potential for professional investing

Milestone Domestic Fund I, their initial offering in the realty infrastructure space had a corpus of 250 crores and funded various residential and commercial projects in more than 5 cities in the first year. Milestone claimed that "Independent valuation show the appreciation in land only to be up by 32% in six months, even in a volatile market conditions".

ILFS Milestone Fund I was india's first REIT like structure that is yield driven. This fund attracted 1000 crores and eliminates the development risk by investing in properties which are completed and rented out. This fund was also the first in its class to distribute a quarterly return to its investors.

The new fund named Milestone Domestic Scheme II will be more focussed on Land Banking, Gated and Plotted Development activities. Fund's prospectus claims that this activity has a shorter gestation period and that they can deliver superior results by leveraging the acquired experience through their earlier ventures.

Summary of Milestone Domestic Scheme II

Fund Size : 500 Crores + green shoe option of 500 crores
Fund Life : 4 years with option for 2 one year extensions
Minimum : 20 Lakhs for Individuals, 1 crore for institutions
Targeted Return : 30% compounded, Annualized IRR
Drawdown : 10% upfront and 15% approximatel)y every quarter for six quarters

More information can be found Here