Motilal Oswal Real Estate raises Rs 575 crore for affordable housing
Motilal Oswal Real Estate (MORE), the real estate arm of Motilal OswalNSE 0.72 % Private Equity, has raised over Rs 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 Rs 80 crore to Rs 150 crore each.
“We have achieved the first close worth Rs 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 & CEO, MORE, told media.
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 Rs. 2,100 crores. Of this, IREF has AUM of Rs 200 crore, IREF II has Rs 500 crores, IREF III Rs 1,030 crores and balance under PMS / Prop Investments.