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Motilal Oswal Real Estate returns over 75% of capital from the First Fund; Raises over Rs 400 cr for the Second Fund

Mumbai 17-Nov-2014

Motilal Oswal Real Estate returns over 75% of capital from the First Fund; 
Raises over Rs 400 cr for the Second Fund

Mumbai, 17th November 2014: Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity (MOPE), has announced two more successful exits from its maiden real estate fund, the India Realty Excellence Fund (IREF). These exits have been from its investment in residential projects with Godrej Properties in Bangalore and Xrbia Developers in Mumbai Metropolitan Region. Thus far, IREF has fully exited three of its seven investments and has now returned ~77% of the fund corpus to its investors.

MORE has also launched its second real estate fund, the India Realty Excellence Fund II LLP (IREF II) with a target size of Rs 300 cr and greenshoe option of Rs 200 cr. Having exercised the  greenshoe option, it has raised over Rs 440 cr in capital commitment till date. IREF II is targeting mezzanine transactions which provide regular income through fixed coupon and a subsequent project linked upside. The fund has the mandate to focus on residential sector in top five cities viz., MMR, NCR, Bangalore, Pune and Chennai, partnering with developers having proven track record and execution expertise. 
IREF II has already made two investments, one in MMR with Ahuja Developers and another in Bangalore with Mahaveer Group and is targeting to further deploy over Rs 300 cr over the next few months.
Vishal Tulsyan, Managing Director and CEO, Motilal Oswal Private Equity said, “We now manage over Rs 2,500 cr AUM across our private equity and real estate funds. Our sponsor’s brand equity coupled with team’s market knowledge and transaction abilities uniquely position us as a formidable player in both private equity and real estate space.”
Sharad Mittal, Director & Head, Real Estate Fund, Motilal Oswal Real Estate said, “Our exits have come in challenging times for the real estate sector which is a testimony to our commitment to generate superior risk adjusted returns for our investors through diligent underwriting and proactive asset management. Further, we are evaluating some interesting investment opportunities from our new fund across metros with reputed developers, in line with our investment thesis.”
Rahul Nahar, Founder, Xrbia Developers said, “We are glad that Motilal Oswal, with whom we have a very long standing relationship, is exiting the project with good returns.”

About Motilal Oswal Real Estate Business

Motilal Oswal Real Estate Investment Advisors Pvt. Ltd. (MORE) is managing two real estate funds, namely India Realty Excellence Fund (IREF) and India Realty Excellence Fund II (IREF II). 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 seven investments across asset classes and has partnered with mix of marquee and emerging developers like Godrej Properties, Supreme Universal etc. On the back of its success, MORE launched IREF II, a Rs 500 cr domestic real estate fund that invests in residential real estate projects primarily in mid income housing in Mumbai, Pune, Bangalore and selectively in Chennai and NCR.  The focus would be to ensure regular payouts with downside protection and coupled with upside sharing by investing with reputed developers with an established track record.
About Motilal Oswal Private Equity Business
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 i.e. India Business Excellence Fund (IBEF) and India Business Excellence Fund II (IBEF II) focused on providing growth capital to mid market companies, typically in the range of US$ 10-20 million, across sectors. IBEF, launched in 2007 is an INR 550 Crore ($ 125 million) is fully invested and has 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 three partial exits. On the back of its success of IBEF, MOPE has raised IBEF II, a Rs.950 Crore (~USD 160 million) growth capital fund. Currently, investments are being made through IBEF II.  

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 1,484 business locations spread across 527 cities and the online channel to over 773,716 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.