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Motilal Oswal Alternates the alternative investments arm of Motilal Oswal Financial Services Limited has announced the first close of India Realty Excellence Fund VI (IREF VI), its sixth real estate fund. The Fund, launched with a target corpus of INR 2,000 Cr (including a green shoe of INR 500 Cr) has received commitments aggregating INR 1,250 Cr in the first close.
MO Alts, till date, has invested capital in the real estate sector through five real estate funds. The Firm also manages other standalone and proprietary investments in the real estate space. MO Alts is a seasoned real estate manager and has till date undertaken more than 150 investments and funded ~INR 7,500 Cr across 50 developers in India. They have also successfully exited more than 85 investments and generated an IRR of more than 20% from their pre-approval bets
IREF VI will strategically focus on early-stage investments pre-dominantly in mid-income/affordable residential projects across India's top 8 cities, including Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad.
This Fund has been raised from high net worth individuals, non-resident Indians and family offices/corporates. The Fund is set up as an alternative investment fund (AIF Category II).
MO Alts is the alternative investments platform of Motilal Oswal Financial Services Limited. The cumulative AUM under MO Alts is more than USD 2 billion across growth stage private equity and real estate verticals.
Vishal Tulsyan, MD & CEO, MO Alts said “This marks the largest and the fastest first close for our real estate funds to date. This successful fund raise amidst a bullish equity market underscores the unwavering confidence our investors have placed in our capabilities. We are very optimistic about the real estate market as we foresee a period of robust growth ahead. Moving forward, we are committed to strengthening our position as a leading capital provider for real estate sector by capitalizing on a myriad of opportunities in the years to come.”
Saurabh Rathi, Co-Head (Real Estate) at MO Alts said “The Indian real estate market has exhibited remarkable resilience and growth in recent years. The residential sector has witnessed decadal high demand while the office market has demonstrated strong absorption nearing the pre-pandemic peaks. With sectoral indicators projecting continued momentum, the demand for early-stage capital has become increasingly pronounced. We are dedicated to addressing this need by leveraging our strong track record, conservative underwriting practices and robust risk management framework.”
Anand Lakhotia, Co-Head (Real Estate) at MO Alts said “We are immensely grateful to our investors, including those who have previously invested in our funds, for their continued trust in our investment expertise. With tightening restrictions on Banks and NBFCs regarding capital usage and a promising outlook for the real estate market, we are strategically positioned to capitalize on emerging opportunities. The deal flow looks very promising as we have already built a robust pipeline of investment opportunities across major cities at attractive risk-adjusted yields which are at various stages of evaluation.”
