IL&FS Investment, Milestone Capital launch real estate fund
Mumbai, Sep 10 (UNI) IL&FS Investment Managers and Milestone Capital Advisors have jointly launched a yield driven real estate fund, ''IL&FS-Milestone Fund-1'', under a close end scheme with a term of four years.
Claiming that the fund is the first of its kind in India with similar structure to Real Estate Investment Trust (REIT), the company said the fund will target a corpus of Rs 1000 crore, including a green shoe option of Rs 500 crore, and will be open for subscription between September 10 to October 30.
Speaking to the reporters, IL&FS chairman and managing director Shahzaad Dalal said, ''This fund is the first real estate investment fund in India to offer a low minimum investment commitment of Rs 10 lakh for individuals and Rs one crore for corporates with the convenience of draw-down spread over 12 months.'' The fund, targeting an annual yield of 11 per cent and an Internal Rate of Return (IRR) of 18-20 per cent, will offer a quarterly yield distribution to investors and property appreciation benefits in the long term, Mr Dalal said.
The fund plans to invest the proceeds in office buildings, IT&ITES buildings, hospitals, hotels, warehouses and shopping malls across the country, he added.
UNI