Milestone Capital Advisors exits investment in Cerebrum B2 in Pune for Rs 145 crore

MUMBAI: Private equity firm Milestone Capital Advisors today said it has exited its investment in a commercial property in Pune developed by Kumar Urban Development for a realisation of Rs 145 crore. The firm had invested in the 2.5 lakh sqft commercial property, The Cerebrum B2, situated in Kalyani Nagar in Pune, through its IL&FS Milestone Fund I, a rental yield fund investing in ready pre-leased commercial assets.

"This exit, for a realisation of Rs 145 crore representing a 15 per cent return on investment, demonstrates yet another example of our full cycle capability of fund raising, deployment and exits," Milestone Capital Advisors Vice Chairman and Director Rubi Arya said in a statement. The firm had acquired stake in the property that houses tenants like Vodafone, Standard Chartered, Reliance Communications, Redknee India and Fiserv, in March 2008.

"We are happy to conclude this exit especially in a recessionary market like now, and after holding on to this prime asset for about six years and having earned a rental escalation through this period, we have sold the same to a high networth investor," she said. Arya further said the deal also indicates a positive HNI outlook towards such quality commercial assets that provide stable rental returns in addition to capital appreciation.

The fund had earlier exited from Raheja Titanium project in Jogeshwari (East) in Mumbai. The rental yield funds managed by Milestone cover investments of around Rs 1,500 crore over 4 million sqft of prime commercial properties, including offices, IT and ITeS parks, logistics and warehousing.