Motilal Oswal Alternates Invests INR 190 Crore in Affordable Housing, Boosting Indian Real Estate Market
Motilal Oswal Alternates' INR 190 crore investment in affordable housing projects across top Indian cities reflects strong confidence in the Indian real estate market, particularly in the affordable and middle-income housing segment.
Affordable HousingReal EstateMotilal Oswal AlternatesIndia Realty Excellence Fund ViMiddle Income HousingReal Estate PuneAug 01, 2024
The investment is divided between Chennai-based Radiance Realty Developers India Ltd (receiving INR 100 crore) and Pune-based Mantra Properties and Developers Pvt. Ltd (receiving INR 90 crore). These early-stage investments will provide crucial capital for the developers to acquire land for their upcoming residential projects.
MO Alts' focus on affordable housing aligns with current market trends. India's expanding middle class and rapid urbanization are driving a strong and consistent demand for affordable housing options in major cities. This investment positions MO Alts to capitalize on this trend across eight key urban centers Mumbai Metropolitan Region, Delhi-National Capital Region, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad.
This recent investment is part of a larger plan by MO Alts. The company established the India Realty Excellence Fund VI (IREF VI) with an ambitious target corpus of INR 2,000 crore. This fund specifically focuses on early-stage investments in affordable and middle-income housing projects. MO Alts has already achieved a first close of INR 1,274 crore and is targeting a final close of the entire fund (INR 2,000 crore) by the end of 2024.
India's real estate sector has witnessed a significant recovery since the pandemic. A surge in demand from homebuyers has led to a rise in residential sales. This renewed optimism has emboldened developers to actively seek land parcels for new projects. MO Alts anticipates that land transactions will remain stable as developers expand their land banks in anticipation of continued housing demand, potential moderation in interest rates, and increased support from institutional investors like themselves.
About Motilal Oswal Financial Services Ltd
Motilal Oswal Financial Services Ltd is a leading Indian financial services company that offers a range of financial services, including investment banking, securities trading, and asset management.
About Radiance Realty Developers India Ltd
Radiance Realty Developers India Ltd is a Chennai-based real estate development company that focuses on creating affordable and middle-income housing options in southern India.
About Mantra Properties and Developers Pvt. Ltd
Mantra Properties and Developers Pvt. Ltd is a Pune-based real estate development company that focuses on creating affordable and middle-income housing options in western India.
Frequently Asked Questions
What is the total amount invested by Motilal Oswal Alternates in affordable housing projects?
INR 190 crore
Which cities will benefit from Motilal Oswal Alternates' investment in affordable housing?
Mumbai Metropolitan Region, Delhi-National Capital Region, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad
What is the target corpus of the India Realty Excellence Fund VI?
INR 2,000 crore
How much has Motilal Oswal Alternates already achieved in the first close of the India Realty Excellence Fund VI?
INR 1,274 crore
What is the expected final close date of the India Realty Excellence Fund VI?
End of 2024
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