Rubi Arya, executive vice-chairman of the company, said: “After demonstrating healthy exits from all our funds, we are now evaluating new funds in the commercial and warehousing space. We also plan to start NBFC business. We have already begun operations in our trusteeship business, which has garnered assets under trusteeship around Rs 9,000 crore.”
Last month, Milestone exited from 247 IT Park, generating 2x multiple on exit, making it one of the largest exits in the commercial real estate PE space. Situated at Vikhroli in Mumbai and spread over 1.1 million sq ft, the deal was closed at an enterprise value of Rs 1,060 crore. Milestone had invested Rs 260 crore and exited with 2.4 times return. Comparatively, this exit is significant because recently, one large real estate property fund sold its stake in one of its investments at a loss.
The Indian commercial real estate markets have been witnessing sluggish growth rates in the past few years primarily due to political and macro-economic uncertainties. However, in 2014, Milestone exited from eight investments with a total amount of Rs 887 crore. In 2015, it has so far exited from four investments at Rs 670 crore, making total 12 exits at Rs 1,557 crore in 18 months, perhaps the largest in real estate PE segment. After 2011, till December 2013, Milestone had made exits to the tune of around Rs 1,200 crore. Out of these exits, three funds were also giving rental returns, while the rest were development funds.