Mumbai, Dec 18 (UNI) Real Estate investment fund, ''IL&Fs-Milestone Fund-1'' has achieved its first closing with initial subscription of over Rs 500 crore.
The raised fund, which includes 30 per cent from financial institutions and 70 per cent from high net-worth individuals investors, will be utilised for real estate development focused in tier-II and tier-III cities across the country, managing partner and chief investment officer of the fund, Ved Prakash Arya told UNI.
''On 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,'' Mr Arya said. About Rs 65 crore has been already allocated for investment in the city of Rajkot, Mr Arya said adding, ''The focus will be on smaller towns, where we are planning the real estate investment.'' This fund was much similar to Real Estate Investment Trusts (REIT) which was well accepted overseas. The firm is planning for some more similar products, which would hit the capital market in accordance to the regulations, once the government allows REITs in the country, Mr Arya added.
Real estate has emerged as an attractive alternative investment destination across different investors including high net-worth individuals, financial institutions, large corporates and business houses, Mr Arya emphasised. The minimum investment amount in this fund was Rs 10 lakh, spread over 12 month.