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Motilal Oswal hits first close of new fund at ₹650 crore

BENGALURU- Motilal Oswal Real Estate (MORE), is a realty-focused private equity arm of Motilal Oswal Financial Services limited. It has achieved the first close of India Realty Excellence Fund V (IREF V). It is considered to be the fifth real estate fund. The fund had launched with a target corpus of INR800 crores. It has received commitments of around INR 650 crores. 

On Thursday it has been stated that the remaining capital will be nabbed over the next coming months. 

Moreover, the new fund has been raised from high net-worth individuals (HNIs) and family offices. They will be set up as an alternative investment fund (AIF Category – 2). 

The IREF V will focus on offering senior secured debt in post-approval projects and plans to deploy the capital in mid-income, and other affordable residential projects across the top 7 cuties. It will also select investing in commercial projects. IREF V would undertake 12 to 15 transactions over its entire fund life.

It has until now 89 investment funded projects through 68 investments and exited 33 investments. Moreover, with MORE and IREF V cumulative assets under management (AUM) is now over INR 4,400 crores. 

MORE is considered as the private investment platform for Motilal Oswal Financial Services Limited. 

In addition, the CEO of MOPE Vishal Tulsyan said- “We believe that the realty sector is currently at an inflection point. With this fund, our cumulative private equity AUM has crossed $1 billion and real estate forms a key part of that AUM. We will continue to strengthen our position as a real estate investor by capitalizing on such diverse opportunities over years to come”. 

It has been stated that the funds will be repositioned ourselves to cater to capital needs via the project lifecycle offering a complete financing solution and becoming the preferred financial partner for real estate developers. The company has raised around INR650 crores within 3 months of its official launch. 

MORE has said lastly that its first investment in IREF V with Shriram Properties Limited in Bengaluru and has a strong pipeline of deals that it is currently evaluating and analyzing all the needed areas. 

Talking about its fourth fund, it achieved its final close last year. It is currently under deployment and has made 13 investments so far. Out of one was secured at an investment level internal rate of return (IRR) of 21%.

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