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Motilal Oswal Real Estate announces First Close of India Realty Excellence Fund II LLP at INR 225 crore

Mumbai 05-Mar-2014

Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity announced the first close of its second real estate fund, India Realty Excellence Fund II LLP. The Fund has raised INR 225 crore within a short span of 3 months from its launch in November 2013. The Fund is targeting to raise INR 300 crore with a Green Shoe option of INR 200 crore.
IREF II will capitalise on the opportunities by focusing on mezzanine debt transactions which provide regular income through fixed coupon and a subsequent project linked upside. The Fund will focus on residential sector in top five cities viz., MMR, NCR, Bangalore, Pune and Chennai partnering with developers having proven track record. 
Sharad Mittal, Director & Head Real Estate Investments of Motilal Oswal Real Estate said, “We are glad with the response we have received for the Fund. We believe that next 12-18 months is an interesting period for doing mezzanine transactions. We are currently evaluating few opportunities in line with our strategy and are in the process of concluding them. ” 
The second fund comes on the back of the success of the first fund, India Realty Excellence Fund (IREF) which was raised four years back. IREF has invested in seven projects in Mumbai, Pune and Bangalore with marquee names like Godrej Properties, Supreme Universal, etc. Within 12 months from the end of the Investment Period, IREF has returned ~60% of the total capital commitment.

About Motilal Oswal Private Equity Business
MOPE Investment Advisors Pvt. Ltd. is a subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity, Private Wealth Management and Investment Banking. MOPE has raised two growth capital funds [India Business Excellence Fund-I (IBEF-I) and India Business Excellence Fund-II (IBEF-II)] and a real estate fund, India Realty Excellence Fund (IREF) to invest in real estate projects. IBEF-I is a US$ 125 mn (Rs. 550 crore) sector agnostic India focused private equity fund. IBEF-I has an investment focus of providing growth capital to mid market companies, typically in the range of US$ 5-15 million, across sectors. IBEF has invested in 13 companies across sectors such as food processing, bulk packaging, power transformers, power infra enablers, EPC, engineering goods, ITES, financial services, EMS, auto components, etc. IBEF –II is a US$ 155 mn (Rs. 950 crore) sector agnostic fund aimed at providing growth capital to Indian mid market companies. The fund intends investments typically in the range of $8 million to $15 million. The fund has already made two investments till date.  MOPE raised IREF-I in 2008, a Rs. 2 bn domestic real estate fund focused on investing in real estate projects in metros and tier-1 cities in India. The fund has made seven investments.  

About Motilal Oswal Financial Services Limited
Motilal Oswal Financial Services Ltd. (NSE: MOTILALOFS, BSE: 532892, BLOOMBERG: MOFS IN) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. Its services and product offerings include wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking and principal strategies. The company distributes these products through 1,546 business locations spread across 519 cities and the online channel to over 792,858 registered customers. MOFSL has strong research capabilities, which enables them to identify market trends and stocks with high growth potential, facilitating clients to take well- informed and timely decisions. MOFSL has been ranked by various polls such as the Best Local Brokerage 2005, Most Independent Research - Local Brokerage 2006 and Best Overall Country Research - Local Brokerage 2007 in Asia Money Brokerage Polls for India. MOSL won 4 awards in the ET-Now Starmine Analyst Awards 2010-11, placing it amongst the Top-3 award winning brokers, was ranked No. 2 by AsiaMoney Brokers Poll 2010 in the Best Local Brokerage Category and won the ‘Best Market Analyst’ Award for 2 sectors at the India’s Best Market Analyst Awards 2011. MOFSL won the ‘Best Capital Markets and Related NBFC’ award at the CNBC TV18 Best Banks and Financial Institutions Awards 2011. MOSL also won the ‘Best Equity Broking House’ award for FY11 at the Dun & Bradstreet Equity Broking Awards 2011. MOSL won the ‘Best Performing National Financial Advisor Equity Broker' award at the CNBC TV18 Financial Advisor Awards 2012, for the 2nd year in a row. MOSL won ‘Best Equity Broker’ award at Bloomberg UTV Financial Leadership Awards 2012, ‘Retailer of the Year (Banking & Financial Services) award at Retail Excellence Awards 2012, and was ranked 2nd in the “Best Overall Brokerage” category by Asia Money in 2011. Motilal Oswal Private Equity won ‘Best Growth Capital Investor-2012’ award at the Awards for Private Equity Excellence 2013. MOSL was adjudged amongst the Top 20 innovators in BFSI for ‘Leveraging on technology in enhancing customer experience’ at the Banking Frontiers Finnovity Awards 2012, and won the ‘Quality Excellence for Best Customer Service Result’ award at National Quality Excellence Awards 2013 

For more information please contact: 
Alpesh Nakrani / Anirudh Rajan  
Paradigm Shift Public Relations
Mob: +91 9869121167 / +91 9892343828    
Tel:  +91 22 22813797 / 98

Mr. Hari Krishnan
Motilal Oswal Asset Management Company Ltd
Mob:  +91 9820520392
Ph: +91 22 39825500