Private equity firm Milestone Capital Advisors today said it will be to raise Rs 150 crore before Diwali for its new fund 'MOF 10' which will be investing in mid-segment residential projects.
"We are hoping to close first round (of MOF 10 fund) before Diwali with Rs 150 crore," Milestone Capital Advisors Vice Chairman and Director Rubi Arya told reporters here.
The firm is targeting to raise full fund size money within in next six months.
Milestone Opportunities Fund 10 (MOF 10) has been launched with a size of Rs 500 crore.
The fund will be investing in real estate projects of five metro cities -- NCR, Mumbai, Chennai, Bangalore and Pune, she said.
Among the projects in which the fund will be investing include ATS Noida, Sheth Developers Mumbai and Assotech Gurgaon, she said.
"The fund aims to generate return (IRR) upwards of 22 to 24 per cent through a combination of structured debt and equity," she said.
"The Milestone Opportunities Fund 10 will offer its investors the opportunity of diversifying his portfolio into strategically identified residential developments across fast growing micro-markets in top metro cities with a relatively modest investment amount. With an investment pipeline already in place, the fund is well poised to provide healthy returns in a short tenure of 3.5 years," she said.
A detailed study jointly conducted by Crisil and Milestone reveals that there are a number of positive factors such as infrastructural development like proximity to upcoming metro stations, etc that enable these micro markets to deliver good returns within the next 3-4 years, she said.
Formed in 2007, Milestone Capital Advisors manages eight private equity funds, including REIT like structures as well as bullion products and have investors such as public sector banks, corporate, HNIs, etc.
