Motilal Oswal Alternate Investment Advisors will be launching a new real estate fund with a corpus of Rs 2,000 crore by the end of March this year, after committing a similar amount in real estate projects in the first nine months of 2022-23.
During April-December, the asset manager has also made 14 exits worth ₹850 crore, with an average internal rate of return of 20.5 per cent.
The alternative investment arm of Motilal Oswal Financial Services, which invests in real estate as well as sector-agnostic funds, currently manages real estate assets worth ₹6,500 crore. It has cumulatively invested in 149 projects and has profitably exited 55 of them.
The investment advisor manages five real estate funds, of which two funds with a total corpus of about ₹ 2,400 crore is still being deployed. It has made 45 investments so far and another ₹500 crore will be invested shortly from the existing funds.
Last year the asset manager invested in projects of developers such as Shapoorji Pallonji, Casagrand Group, Arihant Group, M3M-Smartworld, Marathon Group, Puravankara Group, Alliance Group, and Pacifica Group. These projects are coming up in Pune, Chennai, Delhi-National Capital Region, Mumbai, Bengaluru, and Hyderabad.
While most of the projects are residential projects in the affordable and mid-income segments, it has invested in some commercial projects too.
Sharad Mittal, CEO of the real estate funds, said that increased affordability and propensity for homeownership had led to strong housing sales in the last two years. “While some headwinds may act as momentary disruptors, the real estate sector, which has remained robust during the past two years is expected to carry forward the growth trends into 2023,” he said.
He said that in the last two years, the deal flow in the real estate segment had increased, but the fund would invest cautiously and within the framework of its philosophy.