Motilal Oswal Real Estate announces Final Close of second real estate fund at INR 500 crore;
Plans to launch third fund with a target of INR 750 crore
Deploys more than INR 385 crore; Concludes 4 new transactions with Shriram Properties, Rajesh Lifespaces, ATS Infrastructure and Casa Grande
Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity has raised INR 500 crore and announced the final closure for its second real estate fund, India Realty Excellence Fund II (IREF II). The Fund had a target of INR 300 crore with a Green Shoe option of INR 200 crore taking the total size to INR 500 crore. MORE had announced the first close of its latest investment vehicle at INR 225 crore last year.
IREF II is the second real estate fund managed and advised by the private equity firm. The first fund, India Realty Excellence Fund (IREF), is currently under exit mode and has already returned ~ 80% capital back to its investors.
Vishal Tulsyan, MD & CEO, Motilal Oswal Private Equity Investment Advisors said, “Real Estate fund platform continues to remain a critical focus area under the Motilal Oswal Private Equity Business. We are present across the capital stack and look forward to scale this platform further.”
The fund has closed four new transactions with developers in Bangalore, Mumbai, NCR and Chennai. Together with the earlier investments with Ahuja Developers in Mumbai and Mahaveer Group in Bangalore, the fund has now deployed more than INR 385 crore and is looking to deploy the balance capital over next 3 months.
IREF II has invested with Shriram Properties for their mid-income residential project located off Old Madras Road in Bangalore. The project, with a total saleable of approx. 2 million sq. ft, was launched in October 2014 and has witnessed a good response.
In its second transaction, the Fund has disbursed money to Rajesh Lifespaces for its upcoming residential project located in Vikhroli, Mumbai.
The third investment is with ATS Infrastructure in Noida. The fund has invested in the 2nd Phase of the residential project – ‘Pristine’ located in Sector 150.
In another investment in Chennai, the fund has backed Casa Grande’s acquisition of 5.5 acres of land in Alandur, located in close proximity to Guindy - an established commercial hub. The project shall consist of total saleable area of ~ 0.37 mn sft.
Sharad Mittal, Director and Head – Real Estate Fund, said, “We are pleased with the confidence shown by the investors in our fund management capabilities. From the current fund, we have disbursed approx. 80% of the corpus in top 5 cities over the last 15 months. We have partnered with established developers with proven track record in their respective micro markets. We plan to deploy the balance capital in next 3-6 months and follow it up with a third fund real estate fund”
About Motilal Oswal Real Estate Business
Motilal Oswal Real Estate Investment Advisors Pvt. Ltd. (MORE) is managing two real estate funds, namely India Realty Excellence Fund (IREF) and India Realty Excellence Fund II (IREF II). IREF, launched in 2008 is a ~Rs 200 cr domestic real estate fund focused on equity investments in real estate projects in top three cities in India viz. Mumbai, Pune and Bangalore. IREF has made seven investments across asset classes and has partnered with mix of marquee and emerging developers like Godrej Properties, Supreme Universal etc. On the back of its success, MORE launched IREF II, a Rs 500 cr domestic real estate fund that invests in residential real estate projects primarily in mid income housing in Mumbai, Pune, Bangalore and selectively in Chennai and NCR. The focus would be to ensure regular payouts with downside protection and coupled with upside sharing by investing with reputed developers with an established track record.
About Motilal Oswal Private Equity Business
MOPE Investment Advisors Pvt. Ltd. (MOPE) is a subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity and Investment Banking. MOPE is currently managing two growth capital funds i.e. India Business Excellence Fund (IBEF) and India Business Excellence Fund II (IBEF II) focused on providing growth capital to mid-market companies, typically in the range of US$ 10-20 million, across sectors. IBEF, launched in 2007 is an INR 550 Crore ($ 125 million) is fully invested and has thirteen portfolio companies across sectors such as food processing, bulk packaging, power transformers and power infra enablers, ITES, financial services, EMS, FMCG, auto components, etc. It has already made three partial exits. On the back of its success of IBEF, MOPE has raised IBEF II, a Rs.950 Crore (~USD 160 million) growth capital fund. Currently, investments are being made through IBEF II.
About Motilal Oswal Financial Services Limited
Motilal Oswal Financial Services Ltd. (NSE: MOTILALOFS, BSE: 532892, BLOOMBERG: MOFS IN) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. Its services and product offerings include wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking and principal strategies. The company distributes these products through 1,743 business locations spread across 520 cities and the online channel to over 740,000 registered customers. MOFSL has strong research capabilities, which enables them to identify market trends and stocks with high growth potential, facilitating clients to take well- informed and timely decisions. MOFSL has been ranked by various polls such as the Best Local Brokerage 2005, Most Independent Research - Local Brokerage 2006 and Best Overall Country Research - Local Brokerage 2007 in Asia Money Brokerage Polls for India. MOSL won 4 awards in the ET-Now Starmine Analyst Awards 2010-11, placing it amongst the Top-3 award winning brokers, was ranked No. 2 by AsiaMoney Brokers Poll 2010 in the Best Local Brokerage Category and won the ‘Best Market Analyst’ Award for 2 sectors at the India’s Best Market Analyst Awards 2011. MOFSL won the ‘Best Capital Markets and Related NBFC’ award at the CNBC TV18 Best Banks and Financial Institutions Awards 2011. MOSL also won the ‘Best Equity Broking House’ award for FY11 at the Dun & Bradstreet Equity Broking Awards 2011. MOSL won the ‘Best Performing National Financial Advisor Equity Broker' award at the CNBC TV18 Financial Advisor Awards 2014, for the 4th year in a row. MOSL won ‘Best Equity Broker’ award at Bloomberg UTV Financial Leadership Awards 2012, ‘Retailer of the Year (Banking & Financial Services) award at Retail Excellence Awards 2012, and was ranked 2nd in the “Best Overall Brokerage” category by Asia Money in 2011. Motilal Oswal Private Equity won ‘Best Growth Capital Investor-2012’ award at the Awards for Private Equity Excellence 2013. MOSL was adjudged amongst the Top 20 innovators in BFSI for ‘Leveraging on technology in enhancing customer experience’ at the Banking Frontiers Finnovity Awards 2012, and won the ‘Quality Excellence for Best Customer Service Result’ award at National Quality Excellence Awards 2013.