Motilal Oswal Real Estate Raises 575 cr to Invest in Affordable Housing
Mumbai: Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity, has raised over ₹ 575 crore through the first close of its fourth real estate fund India Realty Excellence Fund IV (IREF IV).
The fund plans to deploy the capital in mid-income and affordable residential projects across six top cities in India while selectively investing in commercial projects. The new fund’s investment strategy will be an extension of the strategy of MORE’s two earlier funds, IREF II and IREF III.
IREF IV would focus on early stage structured equity and debt investments with established developers and undertake 12-15 transactions with average size of ₹ 80 crore to ₹ 150 crore each.
“We have achieved the first close worth ₹ 575 crore for the fund within three months of launch. In this fund, we have also witnessed repeat commitments from many existing investors from our previous funds,” Sharad Mittal, director of MORE, told ET. The money has been raised from high net worth individuals (HNIs) and family offices. The fund was set up as an alternative investment fund (AIF Category II).
Till date, MORE has invested capital in the real estate sector through three real estate funds and portfolio management services ( PMS) and proprietary (Prop) investments. Currently, MORE has assets under managment (AUM) exceeding ₹ 2,100 crore. Of this, IREF has AUM of ₹ 200 crore, IREF II has ₹ 500 crores, IREF III ₹ 1,030 crores and balance under PMS/Prop Investments.
MORE is part of Motilal Oswal Private Equity (MOPE), which is the alternative investments platform of Motilal Oswal Group. The total AUM under MOPE is now over ₹ 5,000 crore.
MORE’s third fund, IREF III, which achieved its final close last year, has till date made 15 investments and secured two complete exits at an investment level internal rate of return (IRR) of 22.3%. The fund has returned money equalling 25% of the investible funds back to its investors.