Motilal Oswal Real Estate invests Rs 350 cr in projects of ATS Infra, Shriram properties
MUMBAI: Real estate private equity firm Motilal Oswal Real Estate (MORE) has invested Rs 350 crore in residential projects of ATS Infrastructure, Shriram Properties, Kolte-Patil Developers, Casa Grande and Pate Developers.
Of this, about Rs 300 crore has been put in projects across Pune, Bengaluru, Noida and Chennai through Motilal Oswal Real Estate’s India Realty Excellence Fund III. The remaining has been invested through the India Realty Excellence Fund II.
The investments have been made into these projects at the land acquisition stage through mezzanine debt-equity structure.
With these investments, MORE’s total assets under management have touched Rs 2,000 crore. MORE is a subsidiary of Motilal Oswal Private Equity, an arm of Motilal Oswal Financial Services. “The deal pipeline is strong and we are focusing on partnering with developers with proven track record,” said Sharad Mittal, head-real estate fund at Motilal Oswal Real Estate.
“We are in advanced stages of concluding few more transactions and will commit total around Rs 550 crore by December.” India Realty Excellence Fund III has so far raisedRs 950 crore out of the planned Rs 1,250 crore to invest in residential projects of developers in the country’s top six property markets.
“We believe real estate will remain as an asset classes, which will attract lot of capital in all forms. Given the capability set we are building,we see a large scale and opportunity for our group,” said Vishal Tulsyan, MD at Motilal Oswal Private Equity. MORE’s third fund IREF III has been set up as an alternative investment fund, or AIF category II, with a tenure of five years from the final close and two extensions of one year each.
“We will continue to focus on investing in projects in the mid-income housing segment where the primary end-user demand lies and in cities witnessing migration influx. Mid-income segment would be in the Rs 4,00-6,000 per sq ft range outside Mumbai region and up to Rs 15,000 per sq ft in Mumbai,” Mittal said.
In March 2015, MORE had raised Rs 500 crore through its second real estate fund. This fund is fully committed across eight transactions in residential projects in the top five markets.