MUMBAI: Motilal Oswal Alternates (MO Alts), the alternative investments arm of Motilal Oswal Financial Services, has raised over Rs 1,250 crore as the first close of its sixth real estate fund India Realty Excellence Fund VI (IREF VI) to invest across the top eight cities of India.
The fund, with a target corpus of Rs 2,000 crore including a green shoe of Rs 500 crore, will strategically focus on early-stage investments predominantly in mid-income and affordable residential projects across Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad.
MO Alts has received this commitment for the category II alternative investment fund (AIF) from high networth individuals, non-resident Indians, family offices and corporates.
“This marks the largest and the fastest first close for our real estate funds to date. This successful fund raise amidst a bullish equity market underscores the unwavering confidence our investors have placed in our capabilities. We are very optimistic about the real estate market as we foresee a period of robust growth ahead,” said Vishal Tulsyan, MD & CEO, MO Alts.
According to him, MO Alts is committed to strengthening its position as a leading capital provider for the realty sector by capitalizing on opportunities in the years to come.
“The Indian real estate market has exhibited remarkable resilience and growth in recent years. The residential sector has witnessed decadal high demand while the office market has demonstrated strong absorption nearing the pre-pandemic peaks. With sectoral indicators projecting continued momentum, the demand for early-stage capital has become increasingly pronounced,” said Saurabh Rathi, Co-Head (Real Estate) at MO Alts.
He expects MO Alts to address this capital requirement by leveraging robust track record, risk management framework, and conservative underwriting practices.
The real estate platform has so far invested in the realty sector through five real estate funds and also manages other standalone and proprietary investments in the real estate space.
MO Alts has made over 150 investments and funded over Rs 7,500 crore across 50 developers in India. It has also made over 85 investment exits with an internal rate of return (IRR) of over 20% from their pre-approval bets.
“With tightening restrictions on banks and NBFCs regarding capital usage and a promising outlook for the real estate market, we are strategically positioned to capitalize on emerging opportunities. The deal flow looks very promising as we have already built a robust pipeline of investment opportunities across major cities at attractive risk-adjusted yields which are at various stages of evaluation,” said Anand Lakhotia, Co-Head (Real Estate), MO Alts.
The alternative investments platform of Motilal Oswal Financial Services has cumulative assets under management (AUM) of more than $2 billion across growth stage private equity and real estate verticals.
In the backdrop of uncertainties surrounding economic growth worldwide, India’s resilient domestic consumption and strong macroeconomic fundamentals have positioned it for continued growth and stability. The momentum in real estate and infrastructure activities has been among the key factors contributing to the Indian economy’s current growth.
