Across India’s top 8 cities, IREF VI will strategically concentrate on early-stage investments in mid-income/affordable residential projects.
The first close of the sixth real estate fund, India Realty Excellence Fund VI (IREF VI), was announced by Motilal Oswal Alternates (MO Alts). Launched with an aim corpus of approximately Rs 2,000 crore, the fund has committed Rs 1,250 crore after its first close.
MO Alts has made capital investments in the real estate sector through five real estate funds. The company oversees additional stand-alone and in-house real estate investments. As an experienced real estate manager, MO Alts has funded approximately Rs 7,500 crore across 50 Indian developers and completed more than 150 investments. In addition, they have profited from over 20% of their pre-approval wagers.
The early-stage investments in mid-income/ affordable residential projects in India’s top 8 cities—Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad—will be the primary strategic focus of IREF VI.
High net-worth individuals, Indian non-residents, family offices, and corporations have raised this fund. The fund is set up as an alternative investment fund (AIF Category II). MO Alts is the name of Motilal Oswal Financial Services Limited’s alternative investment platform.
In the growth stages of real estate and private equity, MO Alts manages assets worth over $2 billion in aggregate.
“This marks the largest and fastest first close for our real estate funds to date,” stated Vishal Tulsyan, MD & CEO, MO Alts. This successful fundraising endeavor amid a rising stock market shows our investors are in our abilities. We are very optimistic about the real estate market and believe it will experience strong growth shortly. We are committed to strengthening our position as the leading capital provider for the real estate sector by taking advantage of as many opportunities as we can in the years to come.”
“The Indian real estate market has exhibited remarkable resilience and growth in recent years,” stated MO Alts co-head (real estate) Saurabh Rathi. The demand for residential real estate has been exceptionally high, and the office market has exhibited robust absorption as it approaches the pre-pandemic peaks. The need for early-stage capital is more apparent than ever, with sectoral indicators indicating sustained momentum. We are committed to meeting this need by utilizing our solid risk management framework, conservative underwriting procedures, and proven track record.”
Co-head of MO Alts’ real estate department, Anand Lakhotia, stated, “We are incredibly appreciative of our investors’ continued faith in our investment knowledge, especially those who have previously invested in our funds. We are in an excellent position to take advantage of new opportunities because of the tightening restrictions on banks and NBFCs regarding capital utilization and the positive outlook for the real estate market. Our robust pipeline of investment opportunities in major cities being evaluated at various stages and offering competitive risk-adjusted yields makes the deal flow look extremely promising.”