Moti­lal Oswal realty arm raises ₹575 crore

HT Estates - - FRONT PAGE - M Sri­ram sri­

MUM­BAI: Moti­lal Oswal Real Es­tate (MORE), the real es­tate arm of fi­nan­cial ser­vices provider Moti­lal Oswal, on Mon­day said it has raised ₹575 crore for its lat­est fund In­dia Realty Ex­cel­lence Fund IV by its first close.

The money will be used to de­velop af­ford­able res­i­den­tial real es­tate in In­dia’s top six cities, while a smaller amount will se­lec­tively be in­vested in com­mer­cial projects. MORE cur­rently has in­vest­ments in Mum­bai, Delhi- NCR, Bengaluru, Chen­nai, Hyderabad and Pune.

The fund will fo­cus on earlystage struc­tured eq­uity or debt in­vest­ments with estab­lished de­vel­op­ers and un­der­take 12-15 trans­ac­tions of ₹80-150 crore each, MORE said in a state­ment.

About 80% of the funds will be used for hous­ing, while the re­main­ing will be used for com­mer­cial ac­tiv­ity, Sharad Mit­tal, di­rec­tor and CEO of MORE said in a phone in­ter­view.

Set up as an al­ter­na­tive in­vest­ment fund (AIF cat­e­gory II), the money was raised from high net-worth in­di­vid­u­als and fam­ily of­fices.

“The im­pact of govern­ment poli­cies like Prad­han Mantri AawasYo­j­naand­in­tro­duc­tion of a reg­u­la­tor (RERA) is grad­u­ally play­ing out across all ma­jor cities of In­dia, in­di­cat­ing early signs of a re­cov­ery in res­i­den­tial real es­tate,” said Mit­tal.

He added that the com­pany plans to make its first in­vest­ment from the fourth fund this month.

MORE, founded in 2008, cur­rently has three real es­tate funds in In­dia with ₹ 2,100 crore of as­sets un­der its man­age­ment.

Its sec­ond fund, IREF II, which made its fi­nal close in 2015, had made 14 in­vest­ments and se­cured seven ex­its. It has re­turned 82% of the fund cor­pus back to its in­vestors. Its third fund, which made its fi­nal close last year, has made 15 in­vest­ments and se­cured two ex­its, re­turn­ing 25% of funds back to in­vestors. Mit­tal said while the lat­est round will last around 18 months, the com­pany will look for its sec­ond close by De­cem­ber this year.

Vishal Tul­syan, CEO of Moti­lal Oswal Pri­vate Eq­uity (MOPE), the hold­ing com­pany of the real es­tate firm, said “We havescaled up­the­real es­tate pri­vate eq­uity busi­ness by more than 10 times in the past five years. We are very pos­i­tive on this sec­tor and in­vest­ing in this seg­ment shall con­tinue to be our fo­cus in the com­ing years”.

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