Motilal Oswal Alternates To Raise 2,000 Cr Via Sixth Real Estate Fund

Motilal Oswal Alternates, which is the alternative investment arm of Motilal Oswal Financial Services Limited, on Thursday announced that it is set to raise up to Rs 2,000 crore by launching its sixth real estate fund, India Realty Excellence Fund VI (IREF VI).

According to media reports, IREF VI will focus on early-stage investments in mid-income or affordable residential projects across India’s top eight cities — Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad. Additionally, selective investments in commercial projects will be pursued, the company said in a statement.

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The fund has been set up as an alternate investment fund (AIF Category II) registered with stock market regulator Securities and Exchange Board of India (SEBI). MO Alts expects to achieve its first close by December 2023 and complete the fundraising process in six to nine months later.

“We firmly believe that the real estate sector has undergone a robust structural recovery, underpinned by strong fundamentals, paving the way for a momentum-led growth trajectory. As we enter the next decade, we are incredibly optimistic about the real estate market, foreseeing it as a prime period for growth. With unwavering commitment, we shall continue to strengthen our presence in this dynamic space," said Vishal Tulsyan, managing director CEO, MO Alts.

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MO Alts had invested in the real estate sector through five real estate funds. The firm also manages other standalone and proprietary investments, and has undertaken more than 140 transactions and funded Rs 7,500 crore of projects across 50 developers in India.

"Our investment strategy, evident in our earlier funds, centres around partnering with established developers in their mid-income/affordable housing projects through structured debt. This approach has yielded positive results, particularly with our focus on IT cities, over the past few years, affirming our commitment to delivering strong returns for our investors. Moving forward, we will continue to work closely with our preferred partners and capitalise on our existing successful strategy," said Anand Lakhotia, co-head of real estate funds at MO Alts.