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Motilal Oswal Real Estate announces final close in IREF III fund at Rs. 1000 crore

Mumbai 26-Sep-2017

Motilal Oswal Real Estate announces final close in IREF III fund at Rs. 1000 crore
Mumbai, 27th September’17: Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity has announced its fourth and final close of India Realty Excellence Fund III (IREF III), the third real estate fund with Motilal Oswal Real Estate. The Fund has raised commitments aggregating to Rs. 1030 Crore. 
MORE till date has invested capital in the real estate sector through three real estate funds and NCDs/ Prop investments. Today, cumulative AUM under MORE stands at more than Rs. 2,000 Crs spread across IREF (Rs. 200 Crs), IREF II (Rs. 500 Crs), IREF III (Rs. 1030 Crs) and balance under NCDs / Prop Investments. 
The latest Fund (IREF III) has concluded 12 transactions till date across top 6 cities in India with marquee developers. The Fund is ~70% committed and is expected to be fully committed by the end of this financial year having a strong pipeline of deals. The Fund focuses on early stage mezzanine/ structured equity investments with established developers across the top 6 cities in India.
Mr. Sharad Mittal, Director & Head of Real Estate Funds at MORE said “This is yet another important milestone for MORE as we achieve final close of our third real estate fund. IREF III fund has attracted great interest among investors, once again reflecting the trust in MORE’s focused approach. We would like to thank our investors who have reposed their faith in our investment capability. MORE Funds have generated superior long-term results for its investors.”
“We believe that post RERA & GST, consolidation in the industry is inevitable. Only large and serious players having meaningful scale, dedicated focus towards timely delivery and customer satisfaction would do well. Given the RERA regulations, our kind of capital shall become much more suited to these developers going forward. We see significant growth and opportunity in the regularized markets, especially with the continued progress towards broader institutional ownership.” 
“We are looking to invest Rs. 1000 Crs in this fiscal year.”
MORE’s investment strategy is based around providing capital at the right time (early stage investments) to established developers for their projects in established micro-markets. The company has strong relationships with dominant players in each micro-market and this is reflected through the multiple transactions that it has executed with these developers across its three funds in the past 4 years. Casa Grande (Chennai - 6 investments), ATS Group (Delhi NCR – 4 investments), Shriram Properties (Bangalore – 3 investments), Rajesh Lifespaces (Mumbai – 3 investments) are the examples of MORE’s investment strategy.
MORE’s macro calls of focusing on mid income housing (prices ranging between Rs. 4000 – 6500 psft) for the past 4 years has yielded good results and the same has been backed by the Government with increased focus towards this segment through policies/ initiatives like PMAY, Infra Status to Affordable Housing, Interest Subsidy etc.”
MORE’s second fund, IREF II, which achieved its final close in 2015, has till date made 13 investments and secured 4 complete exits at an investment level IRR of more than 25%. The Fund has returned ~35% of the money back to its investors within 2 years of its final close. IREF II has been the better performing funds amidst a tough real estate market and the fund has also recently been awarded the “Real Estate Fund of the Year – Domestic” at the CNBC Awaaz Real Estate Awards 2016-17.
Mr.Vishal Tulsyan, the CEO of MOPE said “Our real estate fund business has scaled up over the past few years and our AUM now stands over Rs 2,000 Crores. We see abundant opportunities in the sector to scale up and going forward our real estate fund business would continue to be a critical piece of our private equity fund management business.”

About Motilal Oswal Real Estate
Motilal Oswal Real Estate Investment Advisors Pvt. Ltd. (MORE) was founded in 2008 as a 100% subsidiary of MOPE Investment Advisors Pvt. Ltd. (MOPE) – the Private Equity arm of Motilal Oswal Financial Services Limited (MOFSL). MORE is currently managing three real estate funds, namely India Realty Excellence Fund (IREF), India Realty Excellence Fund II (IREF II) & India Realty Excellence Fund III (IREF III) along with NCD/ Prop Investments. Today, cumulative AUM under MORE stands at more than Rs. 2,000 Cr. IREF, launched in 2008 is a ~Rs 200 Cr domestic real estate fund focused on equity investments in real estate projects in top three cities in India viz. Mumbai, Pune and Bangalore. IREF has made 7 investments and secured 4 full exits and 3 partial exits. On the back of its success, MORE launched IREF II - a Rs 500 Cr domestic real estate fund. IREF II has been fully committed and has invested with established developers such as Ahuja Constructions, ATS Group, Casa Grande, Shriram Properties, Kolte Patil etc. IREF II has made 13 investments till date and secured 4 full exits at an investment level IRR of more than 25%. The third fund, IREF III is a Rs. 1000 Cr domestic real estate fund focusing on early stage structured/ mezzanine investments. Currently in deployment stage, IREF III has made 12 investments across the top 6 cities in India with established developers and is 70% committed.
About MOPE Investment Advisors Pvt Ltd:
MOPE Investment Advisors Pvt. Ltd. (MOPE) is a subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity and Investment Banking. MOPE is currently managing two growth capital funds focused on providing growth capital to mid-market companies, typically in the range of US$ 10-20 million, across sectors. Fund I, launched in 2007 is a INR 550 Crore ($ 115 million) fund and is fully invested in thirteen portfolio companies across sectors such as food processing, bulk packaging, power transformers and power infra enablers, ITES, financial services, EMS, FMCG, auto components, etc. It has already made eleven exits till date. On the back of its success of Fund I, MOPE raised Fund II, a Rs.1,000 Crore (~USD 155 million) growth capital fund. 
Fund II has completely been deployed across consumer, financial services, pharma and manufacturing sectors.

Rohini Kute
Head of Corporate Communications, Motilal Oswal Financial Services
Mob +91 9820196838
Mail: rohini.kute@motilaloswal.com
Alpesh Nakrani
Paradigm Shift Public Relations
Mob +91 98691 21167
Ph-   +91 22 2281 3797 / 98