Fund I   Corpus : US$ 117 mn Vintage : 2008 Focus : Income-Yielding Assets Status : Exit Mode         Amount Invested : US$ 90 mn Number of Investments : 6 No. of Divestments : 1 Gross Return * : 29.6% p.a Fund II   Corpus : US$ 112 mn Vintage : December 2009 Focus : Income-Yielding Assets Status : Investment Mode         Amount Invested : US$ 69 mn Number of Investments : 4 No. of Divestments : - Gross Return : -

* Gross Return in US$ terms for fully divested investments

IIML and Milestone began their partnership in 2007 with the objective of investing in high-quality income generating commercial assets spread across the Tier I cities of India through funds raised from the Indian retail investors. On one hand, while Milestone sought to leverage IIML’s value as a globally recognized, seasoned real estate investor with extensive fund management and fiduciary experience, on the other, IIML sought to leverage Milestone’s real estate operating capabilities. Together, both IIML and Milestone aimed to take advantage of the maturing Indian real estate sector and institutionalize the highly fragmented market for acquiring existing, income producing commercial properties

Today, IIML and Milestone have a strong working relationship and now jointly manage two yield based real estate funds – IL&FS Milestone Fund I (“Fund I”) and IL&FS Milestone Fund II (“Fund II”). These two funds represent approximately US$ 229 million of equity capital commitments and comprise an attractive portfolio of income yielding assets. This portfolio has performed well through the economic downturn, supported by a creditworthy, pan Indian and Multinational tenant base that includes IBM, Standard Chartered Bank, Fiserv and Vodafone

Fund I’s assets are spread across Mumbai, National Capital Region, Pune and Kolkata and has distributed an average cash yield of 11.2% to its investors over the last 13 quarters. Fund I has already effected 1 exit from an investment at a gross IRR of 29.6% and an equity multiple of 1.5x

Fund II is in investment mode, having invested in 4 high-quality assets in Mumbai and Bengaluru. One of the landmark investments by Fund II was the purchase of HCC 247 Park, an 1.1 mn sq ft commercial property located at LBS Road, Vikhroli, Mumbai