Motilal Oswal Considers Launching Seventh Real Estate Fund
Motilal Oswal Alternates, the alternative investment arm of the Motilal Oswal group, is considering launching its seventh real estate fund after successfully raising Rs 2000 crore from its sixth fund. The company is currently in discussions to determine the strategy and size of the new fund.
Real EstateMotilal OswalFund RaisingInvestmentProperty FinancingReal Estate NewsJul 24, 2025
The group’s previous fund, Indian Realty Excellence Fund VI (IREF-VI), was for pre-approval stage financing in real estate, including land purchase and related expenses. After banks and non-banking finance companies were barred from funding land and approval-related debt, many, including Motilal Oswal, ASK, and others, launched funds for pre-approval financing.
Lakhotia said if the seventh fund is launched with a similar strategy, it will be bigger than the sixth fund. For a different strategy, the company will look at a smaller size. The sixth fund has deployed 65% of its corpus, and the fund manager is looking to deploy the remaining 35% in the next 3-6 months. “About Rs 425 crore is co-invested with our investors, and we are looking at a similar amount of co-investments for the seventh fund,” Lakhotia said.
In each of the major cities, MO Alternates is looking at Rs 300-500 crore of investment, Saurabh Rathi, managing director and co-head of Real Estate at the company said. Rathi said the company took 14 months to raise the sixth fund, as opposed to 18 months for the fourth fund, which had a similar strategy of pre-approval financing.
“The way wealth is growing in the country and our wealth management business is growing, the time taken to raise funds will further go down,” he said. MO Alternates has already done its first exit from IREF VI, delivering an internal rate of return (IRR) of 20.25% and looking at an overall IRR of 20% from its sixth fund.
On the fall in property sales, he said after a bull run of three years, prices are steady and volumes have stabilized. “Prices are steady now and rise is inflation-linked, which is good for the markets,” Rathi said. The way interest rates have fallen and are expected to decline further, affordability for buyers has increased. MO Alternates has Rs 10,000 crore of cumulative assets under management (AUM) in real estate across six real estate funds and co-investments.
Frequently Asked Questions
What is the current status of Motilal Oswal's sixth real estate fund?
Motilal Oswal's sixth real estate fund, Indian Realty Excellence Fund VI (IREF-VI), has raised Rs 2000 crore and has deployed 65% of its corpus. The fund manager is looking to deploy the remaining 35% in the next 3-6 months.
What is the strategy of the sixth real estate fund?
The sixth real estate fund, IREF-VI, focuses on pre-approval stage financing in real estate, including land purchase and related expenses. This strategy was adopted after banks and non-banking finance companies were barred from funding land and approval-related debt.
What is the potential size of the seventh real estate fund?
If the seventh fund follows a similar strategy to the sixth fund, it is expected to be larger. For a different strategy, the company will look at a smaller size.
How long did it take to raise the sixth real estate fund?
It took 14 months to raise the sixth real estate fund, IREF-VI, which is faster than the 18 months it took to raise the fourth fund with a similar strategy.
What is the current market outlook for real estate in India?
After a bull run of three years, real estate prices are now steady, and volumes have stabilized. The rise in prices is inflation-linked, which is beneficial for the market. Additionally, the decline in interest rates has increased affordability for buyers.
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