Mile­stone Cap Buys Part of IT Park in Pune from MIDC

The Economic Times - - Economy & Companies - Kailash.Babar @times­

Mum­bai: Pri­vate eq­uity firm Mile­stone Cap­i­tal Ad­vi­sors has ac­quired half of an IT park build­ing in Kharadi busi­ness district of Pune for over ₹ 160 crore. Mile­stone has bought the south wing of E-Park, a part of Kharadi IT Park pro­moted by Ma­ha­rash­tra In­dus­trial De­vel­op­ment Cor­po­ra­tion (MIDC). The build­ing is next to EON IT Park and all of its 2.30 lakh sq ft of­fice space is leased to multi­na­tional com­pa­nies with pe­ri­odic rental es­ca­la­tions.

Mile­stone has en­tered this trans­ac­tion with an en­try yield of around 9.5% to the prop­erty.

“This in­vest­ment was made with a mix of debt and eq­uity while our bor­row­ing costs were much lower, thus gen­er­at­ing a pos­i­tive ar­bi­trage of around 100 ba­sis points,” San­deep Chadha, part­ner at Mile­stone Cap­i­tal Ad­vi­sors, told ET.

This is Mile­stone’s se­cond in­vest­ment through its fourth pri­vate real es­tate in­vest­ment trust (REIT), called Mile­stone Com­mer­cial Ad­van­tage Fund. The north wing of E-Park is owned by Su­nil Bharti Mit­tal-led tele­com op­er­a­tor Bharti Air­tel. Mile­stone Com­mer­cial Ad­van­tage Fund made its first in­vest­ment in June in The Cap­i­tal, a com­mer­cial build­ing in Mum­bai’s Ban­draKurla Com­plex. The lat­est in­vest­ment takes the fund’s to­tal com­mit­ment in pre-leased as­sets in In­dia to ₹ 200 crore. The fund, which is backed by in­sti­tu­tions, high net­worth in­di­vid­u­als and fam­ily of­fices, is look­ing to gen­er­ate a yield of close to 20% on a gross level through this in­vest­ment.

“We are also eval­u­at­ing and are in the process of un­der­tak­ing due dili­gence of other as­sets in Mum­bai and Ben­galuru. These trans­ac­tions are likely to be con­cluded soon as we are in ad­vanced dis­cus­sions with the own­ers of those as­sets,” Chadha said.

He said the com­mer­cial real es­tate in­vest­ment sce­nario in In­dia con­tin­ues to be buoy­ant and the fund is open to in­vest in sus­tain­able value propo­si­tions.

PE firm has bought the south wing of E-Park, a part of Kharadi IT Park, which has 2.30 lakh sq ft of of­fice space, for over 160 cr

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