The real estate investment arm of IL&FS on Thursday announced a Rs. 574-crore investment in an office park project owned by Hindustan Construction Company, involving 1.8 million square feet of space.
IL&FS Milestone Realty Fund a REIT (Real Estate Investment Trust) will take 74 per cent in the 1.8-million sq ft property — 247 HCC Park — valued at Rs. 775 crore, according to the deal.
Over 85 per cent of its space has already been leased out to corporate houses, a HCC statement said.
IL&FS Milestone Realty Advisors (a joint venture between Milestone Capital Advisors and IL&FS Investment Managers) has invested around Rs 1,800 crore in the commercial leased out property business so far.
“We are looking at some other properties and aim to take the investment size in Indian real estate to $1 billion (around Rs 4,600 crore) over the next 24 months,” said Ashish Joshi, managing partner, real estate, Milestone Capital.
The fund comprising investors from all spheres, including retail, family businesses and institutions, expects to generate high returns through investment in commercial, infotech and warehouse properties in the top eight cities.
“We look at properties that are giving returns in the range of 13 per cent and that is the benchmark for selection of the properties,” said Joshi.