IL&FS, Milestone launch real estate fund
For those who do not have time and where withal and also do not have the knowledge and nitty gritties of the real estate sector, there is a good news from IL&FS Investment Managers and Milestone Capital Advisors who have launched a real estate fund. The brief summary of the fund:-
- Description of the Fund: IL&FS-Milestone Fund-I is an yield-driven real estate investment fund based on a structure similar to the real estate investment trusts (REIT). Worldwide it is the most popular investment route for corporates and individuals to invest in real estate.
- Scheme: It is a close-ended scheme with a lock in period of four years, with an option to extend the term by a year and if required by one more year.
- Fund Size: The fund is targeting a corpus of Rs 1,000 crore, which includes a greenshoe option of Rs 500 crore.
- Last Date for Initial Offer: The fund will remain open for subscription till October 30, 2007.
- Minimum Investment: It will be the first real estate investment fund in India to offer a low minimum investment commitment of Rs 10 lakh for individuals (in multiples of Rs 5 lakh thereafter) and Rs 1 crore for corporates, with the convenience of draw-down spread over 12 months.
- Distribution of Profits: IL&FS-Milestone Fund-I will offer a quarterly yield distribution to investors and property appreciation benefits in the long term. The fund is targeting an annual yield of 11% (pre-tax) and an internal rate of return of 18-20% (pre-tax) with property appreciation.
- Portfolio: The funds raised in the initial public offer at par would be invested in office buildings, hospitals, hotels, warehouses and shopping malls. The managers would invest 30 per cent each in retail and office properties, 20 per cent in IT and ITeS and 10 per cent each in warehousing and office properties.
CONTACT DETAILS
IL&FS Investment Managers Limited
Mumbai
The IL&FS Financial Centre
Plot No. C - 22, G Block,
Bandra Kurla Complex,
Bandra (East),
Mumbai 400 051
Phone: +9122-2653 3333 / 2653 3232
Fax: +9122-2653 3056
Bangalore
Aum Plaza
1st FloorNo 76, 3rd Cross
Residency Road
Bangalore 560 025
India
Phone: +9180-4034 3333
Fax: +9180-4034 3310
Contact Email: sanjay.mitra@ilfsindia.com
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