Milestone Capital Advisor exits investment in Millennium Tower in Salt Lake

KOLKATA: Milestone Capital Advisors has exited a private equity investment made into a premium commercial property called Millennium Tower-I, A in Kolkata's Salt Lake area. The commercial building is fully occupied by IBM.

Milestone Capital Advisors had bought the property seven years back and has sold this approximately 1 lakh sq ft building to an undisclosed ultra HNI based out of Bangalore for Rs 50 crore.

"We are happy to conclude this exit especially in a difficult real estate market like Kolkata, which has high vacancy levels and declining capital rates. We have nurtured this prime asset for 7 years and have earned a rental yield of 12% pa," said Rubi Arya, executive vice chairman at Milestone Capital Advisors.

Milestone had also recently renewed the lease agreement with IBM for a long tenure. Rent paid by IBM annually is Rs 5 crore net of property tax and insurance.

"Having an in-house property management and leasing team at Milestone, we have ensured continued occupancy and high-quality maintenance of the property, thereby facilitating a healthy exit," she added.

This deal also indicates a positive HNI outlook towards quality commercial assets that provide stable rental returns in addition to capital appreciation in a city like Kolkata.

The rental yield funds managed by Milestone cover investments of approximately Rs 1,200 crore over 4 million sq ft of prime commercial properties, including offices, IT & ITeS parks, logistics and warehousing.