Strategic Focus on Mid-Income/Affordable Residential Projects
Across India’s top 8 cities, IREF VI will strategically concentrate on early-stage investments in mid-income/affordable residential projects.
Announcement of IREF VI
The sixth real estate fund, India Realty Excellence Fund VI (IREF VI), was recently announced by Motilal Oswal Alternates (MO Alts) with an aimed corpus of approximately Rs 2,000 crore. Following its first close, the fund has committed Rs 1,250 crore.
Investment History of MO Alts
MO Alts has previously made substantial investments in the real estate sector through five different funds. The company oversees additional stand-alone and in-house real estate investments. As a seasoned real estate manager, MO Alts has invested approximately Rs 7,500 crore across 50 Indian developers and completed over 150 investments, reaping profits from over 20% of their endeavors.
Target Investment Locations
The primary strategic focus of IREF VI will be early-stage investments in mid-income/affordable residential projects in India’s top 8 cities:
- Mumbai
- Delhi-NCR
- Pune
- Bangalore
- Chennai
- Hyderabad
- Kolkata
- Ahmedabad
Fund Raising Details
This fund has been raised from high net-worth individuals, Indian non-residents, family offices, and corporations. Set up as an alternative investment fund (AIF Category II), MO Alts is the alternative investment platform of Motilal Oswal Financial Services Limited.
MO Alts manages assets worth over $2 billion in the growth stages of real estate and private equity.
Executive Quotes
Vishal Tulsyan, MD & CEO, MO Alts, commented: “This marks the largest and fastest first close for our real estate funds to date. This successful fundraising endeavor amid a rising stock market shows our investors are in our abilities. We are very optimistic about the real estate market and believe it will experience strong growth shortly. We are committed to strengthening our position as the leading capital provider for the real estate sector by taking advantage of as many opportunities as we can in the years to come.”
Saurabh Rathi, Co-head(Real Estate) of MO Alts, stated: “The Indian real estate market has exhibited remarkable resilience and growth in recent years. The demand for residential real estate has been exceptionally high, and the office market has exhibited robust absorption as it approaches the pre-pandemic peaks. The need for early-stage capital is more apparent than ever, with sectoral indicators indicating sustained momentum. We are committed to meeting this need by utilizing our solid risk management framework, conservative underwriting procedures, and proven track record.”
Anand Lakhotia, Co-head of MO Alts’ real estate department, said: “We are incredibly appreciative of our investors’ continued faith in our investment knowledge, especially those who have previously invested in our funds. We are in an excellent position to take advantage of new opportunities because of the tightening restrictions on banks and NBFCs regarding capital utilization and the positive outlook for the real estate market. Our robust pipeline of investment opportunities in major cities being evaluated at various stages and offering competitive risk-adjusted yields makes the deal flow look extremely promising.”