Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, is planning to raise over Rs 2,000 crore through its sixth real estate fund, India Realty Excellence Fund VI (IREF VI), to invest in the top seven cities of India.
The fund plans to deploy the capital in mid-income and affordable housing projects across Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad, while selectively investing in commercial projects as well.
IREF VI, to be set up as an Alternate Investment Fund (AIF) Category II, will focus on structured mezzanine and equity investments with established developers with execution track records and undertake over 25 transactions of Rs 75 crore each.
Motilal Oswal Alternates (MO Alternates) is currently awaiting the Securities & Exchange Board of India’s approval for the same and expects to start the fund-raising process in the next few months.
Currently, MO Alternates manages five real estate funds and multiple standalone NCD investments. Its cumulative assets under management (AUM) for real estate stand at over Rs 5,500 crore. In real estate, MO Alternates has made more than 100 investments across over 135 projects and secured 50 complete exits.
In the first half of 2022-23, MO Alternates has cumulatively invested over Rs 1,150 crore through its platform across residential and commercial projects in Mumbai, Bengaluru, Chennai, Hyderabad, and Delhi-NCR. MO Alternates has also secured eight profitable exits worth Rs 450 crore through this platform in the last six months.
This year, the fund has invested in the projects of Casagrand Group and Arihant Group in Chennai, M3M and Smartworld Group in Delhi-NCR, Marathon Group in Mumbai, Puravankara Group, Casagrand Group, Alliance Group and Pacifica Group in Bengaluru, and Honer Homes and Alliance Group in Hyderabad.
These real estate projects are a mix of villa and apartment projects in the affordable and mid-income housing segment across these cities. It has also invested in a couple of commercial projects through this platform. In addition to the amounts already committed, MO Alternates plans to commit an additional Rs 1,200 crore to Rs 1,400 crore in the current financial year.
