February 23, 2024: The alternative investments arm of Motilal Oswal Financial Services, Motilal Oswal Alternates (MO Alts), on February 21, 2024, announced the first close of India Realty Excellence Fund VI (IREF VI), its sixth real estate fund. The fund, launched with a target corpus of Rs 2,000 crore (including a green shoe of Rs 500 crore) has received commitments aggregating approximately Rs 1,250 crore in the first close.
IREF VI will focus on early-stage investments predominantly in mid-income/affordable residential projects across India’s top eight cities, including Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad. This fund has been raised from high net worth individuals, non-resident Indians and family offices/corporates. The fund is set up as an alternative investment fund (AIF Category II).
MO Alts, till date, has invested capital in the real estate sector through five real estate funds. The firm also manages other standalone and proprietary investments in the real estate space. It has already undertaken more than 150 investments and funded Rs 7,500 crore across 50 developers in India. It has also successfully exited more than 85 investments and generated an IRR of more than 20% from its pre-approval bets. The cumulative AUM under MO Alts is more than $2 billion across growth stage private equity and real estate verticals.
Vishal Tulsyan, MD and CEO, MO Alts, said “This marks the largest and the fastest first close for our real estate funds to date. This successful fundraise amidst a bullish equity market underscores the unwavering confidence our investors have placed in our capabilities. Moving forward, we are committed to strengthening our position as a leading capital provider for the real estate sector by capitalising on a myriad of opportunities in the years to come.”
Saurabh Rathi, co-head (real estate) at MO Alts, said, “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. We are dedicated to addressing this need by leveraging our strong track record, conservative underwriting practices and robust risk management framework.”
Anand Lakhotia, co-Head (real estate) at MO Alts, said “With tightening restrictions on banks and NBFCs regarding capital usage and a promising outlook for the real estate market, we are strategically positioned to capitalise 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.”
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