Motilal Oswal Real Estate Fund, the private equity arm of the Motilal Oswal Financial Services Ltd, is planning a final close to its fifth fund, India Realty Excellence Fund V (IREF V), by April 2022. The IREF V, that was initially launched with a target of ₹800 crore, was subsequently increased to ₹1,500 crore, considering the demand and buoyancy in the real estate sector. The fund will be investing primarily in residential real estate projects.

The first close – of the fifth real estate fund – was achieved earlier this year and it received commitments to the tune of ₹650 crore. By December, IREF V achieved its third close at ₹1,085 crore and made five investments.

Investors

“We intend to close the IREF V by April 22. The fund saw good traction in the market and hence we decided to increase it to ₹1,500 crore, up from ₹800 crore. The investors include HNIs (high net-worth individuals), family offices, among others,.” Sharad Mittal, CEO, Motilal Oswal Real Estate (MORE), told BusinessLine .

According to him, there is an upcycle in real estate segment; and capital availability still remains scarce. Construction sector is yet to face full recovery from the shock of collapse of NBFCs and construction finance companies – which at one point were major financers.

The funds cater to capital requirement during the entire project life-cycle that include land and approval financing, construction finance and last mile funding.

The previously announced additional commitment of ₹1,000 crore – to be made across projects for the remaining three months of this fiscal— will be deployed through the fifth fund (and fourth fund IREF IV), Mittal said.

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