Motilal Oswal Real Estate (MORE) has announced the first close of India Realty Excellence Fund V (IREF V), its fifth real estate fund. The Fund, launched with a target corpus of Rs 800 crore has received commitments aggregating Rs 650 crore.
Till date, MORE through its real estate funds and PMS/NCD investments has funded 89 projects via 68 investments and successfully exited 33 investments. With IREF V, MORE’s cumulative AUM is now over Rs 4,400 crore.
IREF V will focus on providing senior secured debt in post-approval projects. The Fund plans to deploy the capital in mid-income/ affordable residential projects across the top 7 cities in India while selectively investing in commercial projects.
IREF V would undertake 12-15 transactions over its entire fund life. This fund has been raised from high net worth individuals (HNIs) and family offices. The Fund is set up as an alternative investment fund (AIF Category II).
MORE is a part of Motilal Oswal Private Equity (MOPE), the alternative investments platform of Motilal Oswal Financial Services Limited. The cumulative AUM under MOPE is more than Rs 7,500 crore.
Vishal Tulsyan, MD & CEO, MOPE said “We believe that the realty sector is currently at an inflection point. With this fund, our cumulative private equity AUM has crossed $1 bn and real estate forms a key part of that AUM. We will continue to strengthen our position as a real estate investor by capitalizing on such diverse opportunities over years to come.”
Sharad Mittal, Director & CEO of MORE said “With this fund, we have repositioned ourselves to cater to capital requirements throughout the project lifecycle providing a complete financing solution and becoming the preferred financial partner for real estate developers. We have raised Rs 650 crore. for the fund within three months of launch and we would like to thank our investors for reposing faith in our investment capability.”
Sharad Agrawal, Executive Director – Capital Markets at Knight Frank India said, "the real estate sector continues to be starved of capital, especially for development projects and last mile funding, since the ILFS crisis which was only exacerbated by the pandemic. We saw a smart recovery in the residential sector in the last two quarters driven by stamp duty cuts by some state governments and an opening up of the economy after the first wave of the pandemic. Over the past year we also saw that the demand has been more resilient in the mid-income and the affordable residential projects across the major markets in India. By focussing on less than 100 crore construction finance in projects with approvals in these markets IREF V is setting itself for success as the economy and demand rebounds after the second wave of the pandemic," he added.