Moti­lal Oswal Real Es­tate Raises 575 cr to In­vest in Af­ford­able Hous­ing

The Economic Times - - Finance & Commodities - Kailash.Babar@ times­

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.

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