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Motilal Oswal Real Estate is the realty-focused private equity arm of Motilal Oswal Financial Services Ltd, has achieved 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 of around Rs 650 crore.
The remaining capital will be raised over the next couple of months, the fund said on Thursday. The new fund has been raised from high net-worth individuals (HNIs) and family offices and has been set up as an alternative investment fund (AIF Category II).
IREF V will focus on providing senior secured debt in post-approval projects and plans to deploy the capital in mid-income or affordable residential projects across the top 7 cities while selectively investing in commercial projects. IREF V would undertake 12-15 transactions over its entire fund life.
Till date, MORE through its real estate funds and PMS/NCD investments has funded 89 projects via 68 investments and exited 33 investments. With IREF V, MORE’s cumulative assets under management (AUM) is now over Rs 4,400 crore. MORE is a part of Motilal Oswal Private Equity (MOPE), the alternative investments platform of Motilal Oswal Financial Services Limited.
“We believe that the realty sector is currently at an inflection point. With this fund, our cumulative private equity AUM has crossed $1 billion 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,” said Vishal Tulsyan, managing director and chief executive officer (CEO), MORE.
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