Milestone Domestic Scheme - III Newsletter for Quarter ended December 2014 AN ISO 9001:2008 CERTIFIED COMPANY Dear Investors, We are pleased to share with you our fund update on Milestone Domestic Scheme-III (The Fund) for the quarter October-December 2014. Reserve Bank of India has cut rate by 25 bps since the consumer inflation has reduced to a historic low of 4.4% and wholesale inflation is down to zero. GDP growth is expected to increase to 6% in FY 2015 from 5% previously. Further rate cuts are expected in FY15, which will help soften mortgage rates and interest costs for developers. Increase in confidence, boosted by reforms announced by the Government is likely to provide impetus to housing demand as well. Easing of FDI restrictions for the construction industry, 100 new smart cities planned and change in land acquisition norms will attract capital for the development of real estate. Though residential absorption (area sold) in key cities of India fell 21%YoY in 2QFY15 (Prop Equity data), the pace of demand decline has slowed over the past four consecutive quarters. Going forward, we believe the demand will stabilize in major cities owing to creation of new job opportunities and corporate expansion plans. During this quarter, the Fund has made its 7th distribution and distributed Rs 8.0 crores as income to the investors. The Fund has made a follow on investment of Rs 33.5 crores with the ATS Group for its ATS Dolce project and is in the final documentation stage for a new investment in a Mumbai residential project. I thank you all for the continued support. Alok Aggarwal Managing & CEO Real Estate Portfolio updates Proposed Action 33.5 crores with ATS group in ATS Dolce project. 25 lacs shares of the listed entity as part of Fund is in final documentation stage to deploy the balance capital with a reputed developer in Mumbai crores in the present quarter
Milestone Domestic Scheme - III Newsletter for Quarter ended December 2014 FUND SUMMARY AS ON DECEMBER 31, 2014 Funds Received Rs. 394.0 Crores Final Closing Date 31st January 2012 Term 3.5 years + 1 year + 1 year No. of Investments 8 Rs. 313.0 Crores Capital Divested Rs. 15.0 Crores Income Generated (Pre-tax) Rs. 96.2 Crores Total Divested Amount Rs. 111.2 Crores (28%) PORTFOLIO EXIT DETAILS AS ON DECEMBER 31, 2014 RS. CRORES No. Project Capital Capital Income Total % Capital Invested Divested Generated Exit Divested (Pre Tax, Pre expenses) (A) (B) (C) (B+C) (Ackruti City Ltd.) 2 Richa Realtors Mulund, Mumbai 50.0-26.6 26.6-3 Land Marvel Velachery, Chennai 11.0-3.9 3.9-4 Land Marvel 2 Kotivakka, & 15.0-1.4 1.4 - Thaiyur, Chennai 6 Signature Dahisar, Mumbai 20.0-2.4 2.4-7 ATS Group Greater Noida, NCR 98.5-9.9 9.9 - FULLY EXITED INVESTMENTS Structures Pvt. Ltd. Bengaluru Total 313.0 15.0 96.2 111.2
Hubtown, Mumbai Andheri, Mumbai Rs. 73.5 Crores Initial Investment Date March 2011 122,523 sq ft (approximately) Expected Rate of Return 20.00% IRR Extended to Q4 2015 convertible debentures. The Fund has mortgage of ready additional security of the NCDs has been extended to December 2015. Richa Realtors, Mumbai Mulund, Mumbai Richa Realtors Rs. 50.0 Crores Initial Investment Date October 2011 1,150,000 sq ft (approximately) Expected Rate of Return 23.50% p. a. (Simple Interest) Extended to Q2 2015 The Fund has made an investment in a redevelopment project of JDA partner of Richa in the project. Recent Developments and Way forward All the tenements/hutments have been removed from the site. Developer is in discussion for refinancing our investment and has requested for extension of time till such arrangement with another investor is finalised.
Land Marvel - Velachery, Chennai Velachery, Chennai Ramaniyam Group Rs. 11.0 Crores Initial Investment Date November 2011 180,000 sq ft (approximately) Expected Rate of Return 22.00% IRR Extended to Q2 2015 The Fund invested in a residential project in a joint venture with Ramaniyam Group through an SPV viz. Amarneedhi Realtors Private Limited. The SPV entered into a joint be shared by developer and land owner) Developer has requested for extension of time for payment of the interest due to the delay in commencement of project We are in discussions with the developer to exit the project Land Marvel - Kottivakkam & Thaiyur, Chennai Kottivakkam & Thaiyur, Chennai Land Marvel Investment Amount Rs. 15.0 Crores Initial Investment Date July 2012 14,30,000 sq ft (approximately) Expected Rate of Return 24.00% IRR 36 months The Fund has invested in two residential projects at Kottivakkam and Thaiyur through subscription of debentures of the SPV developing these projects. At Thaiyur, the project will cater mainly to the mid-income group. At Kottivakkam, the project is planned as a high-rise premium residential development The project has been stalled due to delay in approvals. The fund has also initiated legal action against the Developer for payment of interest which is overdue. In parallel, we are also actively sourcing JDA and outright proposals for both the projects from established developers to expedite cash flows and exit from this investment.
Hanging Garden - Hebbal, Bengaluru Hebbal, Bengaluru Prisha Properties Rs. 30.0 Crores Initial Investment Date February 2013 295,000 sq ft (approximately) Expected Rate of Return 24.00% IRR 30 months Investment has been made by the Fund into the company, by way of Optionally Convertible Debentures. The Project is residential area of 295, 000 sq ft. The construction work is going on in full swing and the company has been timely servicing the coupon payments The construction has reached 7th slab and is progressing as per schedule. Focus is on improving sales. Signature - Dahisar, Mumbai Dahisar, Mumbai Chaubey Realties Pvt. Ltd. (CRPL) Rs. 20.0 Crores Initial Investment Date March 2013 129,000 sq ft (approximately) Expected Rate of Return 23.00% IRR 36 months The Fund has invested in CRPL through subscription of optionally convertible debentures for a period of 36 months. The Fund has invested in a residential project Signature, Construction of the free sale tower has reached the 3rd podium level. Company has received Commencement Certificate up to eighth floor for the free sale tower. The finishing work of the rehab building is ongoing and part possession shall be provided in Q1 2015. 70 of 138 flats have been sold till date at an average price of Rs 6,800 psf. Current sales prices are between Rs 9,500 psf 10,500 psf for similar projects in the Dahisar East micro market.
ATS Dolce - Greater Noida, NCR Sector Zeta 1, Greater Noida ATS Group Rs. 98.5 Crores Initial Investment Date November 2013 2,414,410 sq ft (approximately) Expected Rate of Return 23% IRR 36 months The Fund has invested Rs 65 crores in Domus Greens Private Limited, an SPV of the ATS group in Novemeber 2013. Fund has now made a follow on investment of Rs 33.5 crores. all modern amenities. The project consists of 13 towers of 26-29 floors each and 14 independent row houses. The Project is being executed in two phases of 1.3 and 1.1 million sq. ft. Fund completed investment of further 33.5 crores in November 2014. Construction is in full swing and excavation for seven towers is nearing completion stage. Foundation work has been completed for 4 towers and upper basement slab is being cast for 2 towers. Company has sold 785,000 sq. ft till December 2014, which is more than 32% of the total saleable area. For Queries Contact: info@milestonecapital.in OR Call CAMS : +91 44 2831 7190/92, 3040 7190/92 Write to: Computer Age Management Services Pvt. Ltd. (CAMS) MILESTONE CAPITAL ADVISORS LIMITED Bandra (East), Mumbai - 400051. India. email: info@milestonecapital.in, website: www.milestonecapital.in Disclaimer: The contents of this bulletin is for information purpose only and should not be construed as advice, representation or warranties from Milestone Group. Milestone Group will not be liable for any loss or damage whatsoever arising as a result of any person acting or refraining from acting in reliance on any information contained therein or anything stated or omitted to be stated herein or for any other reason whatsoever. Milestone Group accepts no liability for any errors, misprints, inaccuracy or omission in this publication.