Motilal Oswal Alternates (MO Alternates), the alternative investments arm of Motilal Oswal Group, is planning to raise over ₹ 2,000 crore through its sixth real estate fund, India Realty Excellence Fund VI (IREF VI), to invest in the top seven cities of India.
The fund plans to deploy the capital in mid-income and affordable housing projects across Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad, while selectively investing in commercial projects as well.
IREF VI, to be set up as an Alternate Investment Fund (AIF) Category II, will focus on structured mezzanine and equity investments with established developers with execution track records and undertake over 25 transactions of ₹75 crore each.
MO Alternates is currently awaiting the Securities & Exchange Board of India’s approval for the same and expects to start the fund-raising process in the next few months.
“Amidst increased volatility in the stock markets, inflationary pressures, rising mortgage rates, and geopolitical tensions, the real estate market in India has remained resilient,” said Sharad Mittal, CEO of real estate funds at MO Alternates. “Multiple factors, like increasing affordability and the increased emotional value placed on home ownership, have led to strong housing sales during the last two years. We believe that strong fundamental factors combined with government initiatives will drive housing demand even higher in the near future.”
Currently, MO Alternates manages five real estate funds and multiple standalone NCD investments. Its cumulative assets under management (AUM) for real estate stand at over ₹5,500 crore. In real estate, MO Alternates has made more than 100 investment across over 135 projects and secured 50 complete exits.
In the first half of 2022-23, MO Alternates has cumulatively invested over Rs 1,150 crore through its platform across residential and commercial projects in Mumbai, Bengaluru, Chennai, Hyderabad, and Delhi-NCR.
MO Alternates has also secured eight profitable exits worth ₹450 crore through this platform in the last six months.
“There has been increased deal flow over the past two years. While we have committed more than 1,150 crore in the past six months, we have remained cautious and continue to operate within our investment framework. Our successful exits over the past six months are a testament to our investment philosophy and hands-on asset management,” Mittal said.