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Motilal Oswal Real Estate achieves first close at INR 650 Crore for fifth realty fund

Mumbai 19-May-2021

Motilal Oswal Real Estate achieves first close at INR 650Crore for fifth realty fund

Mumbai, 19th May 2021: Motilal Oswal Real Estate (MORE) has announced the first close of India Realty Excellence Fund V (IREF V),its fifth real estate fund. The Fund, launched with a target corpus of INR 800Cr has received commitments aggregating INR650 Cr.

Till date, MOREthrough its real estate funds and PMS/NCD investments has funded 89 projects via 68investments and successfully exited33 investments. With IREF V, MORE’s cumulative AUM is now over INR 4,400 Cr.

IREF V will focus on providing senior secured debt inpost-approval projects. The Fund plans to deploy the capital in mid-income/affordable residential projects across the top 7 cities in India whileselectively investing in commercial projects. IREF Vwould undertake 12-15 transactions over its entire fund life.

This Fund has been raised from high net worthindividuals (HNIs) and family offices. The Fund is set up as an alternativeinvestment fund (AIF Category II).

MORE is a partof Motilal Oswal Private Equity (MOPE), the alternative investments platform ofMotilal Oswal Financial Services Limited. The cumulative AUM under MOPE is morethan INR 7,500 Cr.

Mr. Vishal Tulsyan, MD & CEO, MOPE said “We believe that the realty sector is currently at aninflection point. With this fund, our cumulative private equity AUM has crossedUSD 1 bn and real estate forms a key part of that AUM. We will continue tostrengthen our position as a real estate investor by capitalizing on suchdiverse opportunities over years to come.”

Mr. Sharad Mittal, Director & CEO of MORE said “With this fund, we have repositionedourselves to cater to capital requirements throughout the project lifecycleproviding a complete financing solution and becoming the preferredfinancial partner for real estate developers. We have raised INR 650 Cr. forthe fund within 3 months of launch and we would like to thank our investors forreposing faith in our investment capability.”

“There has beena huge gap in construction finance available in the sector over the last twoyears pursuant to the NBFC crisis and now the COVID pandemic. The real estatesector has gathered a lot of momentum during the last 6-7 months on the back ofbottomed-out prices, peak affordability, historically low mortgage rates, Govt.incentives and increasing emotional value of home-ownership during thepandemic. Several developers have clocked record sales in the last two quartersof FY 2021. However, liquidity is still a concern which is where this fund willhelp our developer partners.”

“We have alreadyconcluded our first investment in IREF V with Shriram Properties in Bangalore andhave a strong pipeline of deals that we are currently evaluating.”

“We plan tocomplete the fund raising and close the fund in a couple of months.”

MORE’s secondfund, IREF II, which achieved its final close in 2015, has till date made 14 investments and secured 11 exits at an investment level IRR of 21.3%. The Fund has returned ~126% of the money back to itsinvestors.

MORE’s thirdfund, IREF III, which achieved its final close in 2017, has till date made 24 investments and secured 8 exits at an investment level IRR of 22.6%. The Fund has returned ~52% of the money back to itsinvestors.

MORE’s fourthfund, IREF IV, which achieved its final close in 2020, is currently underdeployment and has till date made 13investments and secured 1 exitat an investment level IRR of 21%.

 

AboutMotilal Oswal Real Estate

Motilal OswalReal Estate Investment Advisors II Pvt. Ltd. (MORE) was founded in 2008 as a100% subsidiary of MOPE Investment Advisors Pvt. Ltd. (MOPE) – the PrivateEquity arm of Motilal Oswal Financial Services Limited (MOFSL). MORE iscurrently managing four real estate funds, namely India Realty Excellence Fund(IREF), India Realty Excellence Fund II (IREF II) & India Realty ExcellenceFund III (IREF III) and India Realty Excellence Fund IV (IREF IV) along withPMS/ NCD Investments. Today, cumulative AUM under MORE stands at more than INR 4,400Cr. IREF, launched in 2008 is an INR 200 Cr domestic real estate fund focusedon equity investments in real estate projects in top three cities in India viz.Mumbai, Pune and Bangalore. IREF had made 7 investments and has secured exitsin all 7 investments. On the back of its success, MORE launched IREF II - an INR500 Cr. domestic real estate fund. IREF II has been fully committed and hasinvested with established developers. IREF II has made 14 investments till date(including re-investments) and secured 11 exits at an investment level IRR of21.3%. The third fund, IREF III is an INR 1,000 Cr domestic real estate fundfocusing on early stage structured/ mezzanine investments. IREF III has made 24investments across the top 6 cities in India with established developers andsecured 8 exits at an investment level IRR of 22.6%. The fourth fund, IREF IVis an INR 1,150 Cr domestic real estate fund currently under deployment. IREFIV has made 13 investments till date and has secured 1 exit at an investmentlevel IRR of 21%.

For Further Details Contact:

Rohini Kute

Head – Group CorporateCommunications, Motilal Oswal Financial Services

Mob +91 9820196838

Mail: rohini.kute@motilaloswal.com