Motilal Oswal Alternates Invests ₹190 Crore in Real Estate Sector
The company has committed ₹100 crore to Chennai-based Radiance Realty Developers India Ltd and ₹90 crore to Pune-based Mantra Properties for their respective residential projects.
Real EstateMotilal Oswal AlternatesRadiance Realty Developers India LtdMantra PropertiesIndia Realty Excellence Fund ViReal Estate PuneJul 18, 2024
Both the investments are early-stage bets by MO Alts, where the developers aim to utilise the capital to acquire land, on which they intend to develop residential projects.
In August last year, MO Alts had said it will raise ₹2,000 crore via its sixth real estate fund, India Realty Excellence Fund VI (IREF VI). The fund is strategically focussed on early-stage investments in predominantly middle-income and affordable residential projects across the top eight cities—Mumbai Metropolitan Region, Delhi-National Capital Region, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad.
The company had achieved the first close of its new fund at ₹1,274 crore, in February this year. “Since the first close, we have received additional commitments of ₹300 crore. MO Alts is targeting to achieve final close of ₹2,000 crore in 2024,” Anand Lakhotia, co-head of real estate, MO Alts, told Mint.
Information Motilal Oswal Financial Services Ltd is a financial services company that provides a range of financial products and services, including equity, commodities, and currency broking, mutual funds, and portfolio management services.
Motilal Oswal Alternates (MO Alts) is the alternative investment arm of Motilal Oswal Financial Services Ltd, which provides alternative investment solutions to its clients.
The real estate sector has seen a sharp turnaround in the aftermath of the pandemic. With the revival in demand from home buyers fuelling a rise in residential sales, developers have also been emboldened to shop for land parcels. As a strategy for the new sixth fund, MO Alts plans to continue funding developers to acquire land for residential projects. “Developers are bolstering their supply pipeline through substantial investments in land acquisition nationwide. We anticipate land transactions to remain stable, driven by developers expanding their land banks amidst anticipated interest rate moderation, increasing housing demand, and support from institutional funding agencies,” said Saurabh Rathi, co-head of real estate, MO Alts.
The company has also signed term sheets for five other transactions, to invest around ₹600 crore, which are currently under various stages of due diligence.
Frequently Asked Questions
What is the amount invested by Motilal Oswal Alternates in its new real estate fund?
₹190 crore
What is the focus of India Realty Excellence Fund VI (IREF VI)?
Early-stage investments in predominantly middle-income and affordable residential projects across top eight cities
What is the target final close for IREF VI?
₹2,000 crore in 2024
What is the current stage of the five other transactions signed by MO Alts?
Various stages of due diligence
What is the expected trend in land transactions according to MO Alts?
Land transactions to remain stable, driven by developers expanding their land banks
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