Motilal Oswal Alternates Raises Over Rs 1,750 Crore for Sixth Real Estate Fund
The fund, India Realty Excellence Fund VI (IREF VI), is set to invest in eight major Indian cities, including Mumbai, Pune, and Kolkata. It has already committed Rs 1,000 crore towards mid-income housing projects.
Real EstateMotilal Oswal AlternatesIref ViInvestmentsMidincome HousingReal Estate PuneJan 07, 2025
This fund is strategically designed to invest in eight major cities across India, such as Mumbai, Pune, Kolkata, and others.
In the current financial year, MO Alts has already committed around Rs 1,300 crore to various developers.
Of this, Rs 1,000 crore has been directed towards projects in key cities like Mumbai, Pune, Chennai, Hyderabad, and Kolkata.
The fund has made significant investments in mid-income housing projects with reputable developers such as Ajmera Realty, Runwal Enterprises, and Ambuja Neotia Group.
Saurabh Rathi, MD & Co-Head of Real Estate Funds at MO Alts, emphasized the robust growth in India's real estate sector.
He stated, 'The strong economic fundamentals, stable interest rates, and supportive government policies are driving this growth.' In addition to the new fund, MO Alts has achieved more than 11 exits from its earlier funds, generating a robust return of Rs 1,000 crore over the past year.
Anand Lakhotia, MD & Co-Head of Real Estate Funds, highlighted the rapid progress of IREF VI.
'In just 10 months, we have committed Rs 1,000 crore, and we are nearly 90 percent of the way towards our target corpus of Rs 2,000 crore,' he said.
The final fundraising is expected to conclude within the next two months.
The fund has attracted capital from a diverse range of investors, including high-net-worth individuals, family offices, and corporates, many of whom are returning investors.
MO Alts currently manages six real estate funds with a cumulative asset under management (AUM) exceeding Rs 9,500 crore.
The platform has made 168 investments to date, with 100 complete exits.
Overall, the AUM across all asset classes managed by MO Alts surpasses USD two billion.
Motilal Oswal Financial Services is a comprehensive financial services company, offering a wide range of services including investment banking, asset management, and wealth management.
MO Alts, as the alternative investment arm, plays a crucial role in driving the company's growth and innovation in the real estate sector.
Frequently Asked Questions
What is the total amount raised by Motilal Oswal Alternates for its sixth real estate fund?
Motilal Oswal Alternates has successfully raised over Rs 1,750 crore for its sixth real estate fund, India Realty Excellence Fund VI (IREF VI).
Which cities will the IREF VI fund invest in?
The IREF VI fund is designed to invest in eight major cities across India, including Mumbai, Pune, Kolkata, and others.
How much has MO Alts committed to developers in the current financial year?
In the current financial year, MO Alts has committed around Rs 1,300 crore to various developers, with Rs 1,000 crore directed towards projects in Mumbai, Pune, Chennai, Hyderabad, and Kolkata.
Who are some of the developers that IREF VI has invested in?
IREF VI has made significant investments in mid-income housing projects with reputable developers such as Ajmera Realty, Runwal Enterprises, and Ambuja Neotia Group.
What is the target corpus for IREF VI, and how much has been committed so far?
The target corpus for IREF VI is Rs 2,000 crore. In just 10 months, the fund has already committed Rs 1,000 crore and is nearly 90 percent of the way to its target.
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