Motilal Oswal Real Estate raises Rs 650 crore for fifth realty fund

NEW DELHI: Motilal Oswal Real Estate (MORE) on Thursday said it has raised Rs 650 crore fund for providing debt to approved realty projects. The Mumbai-based company announced the first close of India Realty Excellence Fund V (IREF V), its fifth real estate fund.

The Fund, launched with a target corpus of Rs 800 crore, has received commitments of Rs 650 crore.

The amount has been raised from high net worth individuals (HNIs) and family offices. The Fund is set up as an alternative investment fund (AIF Category II).

IREF V will focus on providing senior secured debt in post-approval projects.

It plans to deploy the capital in mid-income/affordable residential projects across the top seven cities in India while selectively investing in commercial projects.

MORE aims to undertake 12-15 transactions through this fifth realty fund.

Till date, MORE said it has funded 89 projects via 68 investments and made exits from 33 investments.

With this fund, MORE’s cumulative AUM (asset under management) is now over Rs 4,400 crore.

MORE is a part of Motilal Oswal Private Equity (MOPE), the alternative investments platform of Motilal Oswal Financial Services Ltd.

The cumulative AUM under MOPE is more than Rs 7,500 crore.

Vishal Tulsyan, MD & CEO, MOPE, said “We believe that the realty sector is currently at an inflection point. With this fund, our cumulative private equity AUM has crossed USD 1 billion and real estate forms a key part of that AUM.”

Sharad Mittal, Director & CEO of MORE, said the company aims to cater to capital requirements throughout the project lifecycle.

“There has been a huge gap in construction finance available in the sector over the last two years pursuant to the NBFC crisis and now the COVID pandemic,” he said.