India Realty Excellence Fund II (IREF II)
- Year of Launch : 2013
- Corpus : INR 500 Crore
- Focus : Residential projects in top cities of India
- Number of Investments : 14
- Investments Exited : 7 full exits & 1 partial exit out of 14 investments
India Realty Excellence Fund II (IREF II) was the second domestic scheme launched by MORE. The fund, with mezzanine structure in mind, shall focus on real estate development, predominantly investing in Tier 1 cities with a residential focus. The fund closed in March 2015.
The fund is fully raised, closed, deployed and is currently in the process of exiting its investments. The fund’s exits are based on self-liquidation or through repayment of fixed IRRs by the developer to the fund.
With the right execution of strategy and processes, IREF II has secured six full exits and one partial exit at healthy IRRs.
As on March 31, 2018 the Fund has already returned 45% of the capital to the investors.
Investment Strategy
- Focus on residential projects at established locations
- Partnering with established developers across top Indian cities for their mid-income residential projects
- 1st Fund to undertake mezzanine investments when others’ were focusing on fixed coupon post approval projects
- Able to identify the shift in goal post from “Approval Risk” to “Sales Risk”
Investment Snapshot as on 31st December 2018
|
| Sr. No. | Investment Date | Project | Location | Committed Amount (in Rs. Cr.) | Current Status |
| 1 |
January 2014 |
Ahuja Developers
|
Mumbai |
86 |
Exited |
| 2 |
March 2014 |
Mahaveer Developers |
Bangalore |
40 |
Exited |
| 3 |
December 2014 |
Shriram Properties |
Bangalore |
67 |
Exited |
| 4 |
March 2015 |
Casa Grande |
Chennai |
58 |
Exited |
| 5 |
April 2015 |
Mahaveer Developers |
Bangalore |
22 |
Exited |
| 6 |
April 2015 |
Rajesh Lifespaces
|
Mumbai |
41 |
Invested |
| 7 |
May 2015 |
ATS Housing |
Noida |
72 |
Exited |
| 8 |
December 2015 |
Skylark Mansions |
Bangalore |
56 |
Exited |
| 9 |
March 2016 |
Kolte Patil |
Pune |
18 |
Invested |
| 10 |
August 2016 |
Casa Grande |
Chennai |
77 |
Exited |
| 11 |
November 2016 |
Casa Grande |
Chennai |
22 |
Invested |
| 12 |
January 2017 |
Casa Grande |
Chennai |
32 |
Invested |
| 13 |
July 2017 |
ATS Infrastructure |
Gurugram |
43 |
Invested |
| 14 |
October 2017 |
Gardencity Realty |
Mangadu |
40 |
Invested |