Motilal Oswal Real Estate exits from seven investments worth over Rs 525 crore

Motilal Oswal Real Estate (MORE), the real estate private equity arm of Motilal Oswal Group, has exited more than Rs 525 crore ($75 million) across seven investments.

The exits were through its funds India Realty Excellence Fund II (IREF II) and India Realty Excellence Fund III (IREF III), the company said in a statement.

The exits were in projects by developers such as Casagrand Builders (Chennai), ATS Group (National Capital Region), Shriram Properties (Bengaluru) and Rajesh Lifespaces (Mumbai) with an average Internal Rate of Return (IRR) of 21 per cent.

The latest exit has been from a residential project being developed by Casagrand Builders in Karapakkam, Chennai, at an IRR of 21.8 per cent.

“Our strategy has always been to partner with developers in top six cities and invest in their affordable and mid-income housing projects through different structures (equity and mezzanine) by providing capital at the right stage,” Sharad Mittal, Director and Chief Executive Officer of MORE said.

MORE’s cumulative Assets Under Management (AUM) is at about Rs 3,200 crore ($465 million) across four real estate funds and portfolio management schemes and prop investments.

IREF II is the second fund launched by MORE, which achieved its final close in April 2015 at Rs 500 crore and has till date made 14 investments. The fund has secured 9 exits at an average IRR of 21.3 per cent.

IREF III is the third fund launched by MORE which achieved its final close in August 2017 at Rs 1,000 crore and has till date made 22 investments. The fund has secured five exits at an average IRR of 22 per cent. The fund has returned about 26 per cent of fund corpus within a period of 2 years from its final close.

“We are also looking at making two more exits in the next couple of months from our second fund IREF II. With those exits, there will be only be three investments left in the fund which we would be looking to wind up within a year’s time,” Mittal added.