Motilal Oswal Real Estate raises ₹1,150 cr for fourth realty fund

Motilal Oswal Real Estate (MORE) has raised a total of ₹1,150 crore for its fourth real estate fund, primarily from High Networth Individuals and family offices. MORE is part of Motilal Oswal Private Equity (MOPE), the alternative investments platform of Motilal Oswal Group.

“Investing in real estate is one of the Group’s core strategies and while we continue to focus on residential real estate, we will also evaluate investing in other asset classes as the sector transforms in the coming years,” said MOPE Managing Director and Chief Executive Officer Vishal Tulsyan.

Fund deployment

The fund, India Realty Excellence Fund IV (IREF IV), will deploy the capital in mid-income and affordable residential projects and select commercial projects across the top six cities. MORE has already committed ₹550 crore across nine investments in Chennai, Pune, Hyderabad, and Ahmedabad from the fund.

IREF IV’s investment strategy is an extension of the investment strategy of MORE’s earlier two funds (IREF II and IREF III). MOPE has more than ₹7,000 crore of cumulative Assets Under Management (AUM), of which, 50 per cent is growth capital and remaining 50 per cent is for real estate. MORE has an AUM of ₹3,600 crore.

“Existing investors from our previous funds have provided commitments to this fund notwithstanding the NBFC crisis, during which we raised the IREF IV fund,” said Sharad Mittal, Director and CEO, MORE.

“With IREF IV, we have adequate dry powder to make new investments. However, considering the global outbreak of Covid-19 and its impact, we will maintain a cautious approach towards new investment commitments. At this point in time, our priority would be to focus on managing our existing portfolio,” Mittal added.

MORE has invested capital in the real estate sector through four real estate funds and through the PMS route.