The real estate arm of financial institute Motilal Oswal, Motilal Oswal Real Estate (MORE), said it has raised Rs. 575 crores for its latest fund India Realty Excellence Fund IV.

The money will be used to develop an affordable residential real estate in India’s top six cities.MORE currently has investments in Hyderabad, Delhi-NCR, Bengaluru, Chennai, Mumbai and Pune.

Sharad Mittal, director and CEO of MORE said that about 80% of the funds will be used for housing, while the remaining will be used for commercial activity.

“The impact of government policies like Pradhan Mantri Awas Yojana and the introduction of a regulator (RERA) is gradually playing out across all major cities of India, indicating early signs of a recovery in the residential real estate,” he added.

CEO of Motilal Oswal Private Equity (MOPE), Vishal Tulsyan, said “We have scaled up the real estate private equity business by more than 10 times in the past five years. We are very positive on this sector and investing in this segment shall continue to be our focus in the coming years”.

MORE, founded in 2008, currently has three real estate funds in India with Rs. 2,100 crores of assets under its management.