India's Milestone Capital Advisors Ltd. is looking to raise an INR500 crore real estate fund to be launched in January. The said fund will also have a greenshoe option of additional INR250 crore.
According to a report by the Economic Times, the fund will be Milestone's eight real estate fund and the first since last two years following the sudden death of its founder and chief executive officer Ved Prakash Arya.
The real estate fund will have a total tenure of 6 years including two extensions. The new fund is likely to focus on investments in commercial assets offering stable rental yields, the report said.
Economic Times said that the private equity firm concluded its last fund-raising effort with an INR410 crore capital commitment in 2011. Milestone Domestic Scheme III has already deployed INR260 crore in seven investments.
Milestone has recently finalized investing INR65 crore in a 14-acre project of ATS Group in Greater Noida. Including this commitment, the fund intends to invest a total of INR150 crore in three projects in the National Capital Region and Bangalore, the report said.
Milestone currently has a total of INR3,200 crore assets under management, Economic Times said.
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