Motilal Oswal Real Estate, which is the property investment division of Motilal Oswal Private Equity Advisors Private Limited, has committed an investment of Rs.120 crore in a residential project helmed by ATS Infrastructure in Gurgaon. Motilal Oswal Real Estate has already disbursed around 60% of the total capital this week and the remainder will be disbursed over the next few months. The capital has been provided for the ATS Grandstand project which is a residential venture spread over 1.7 million sq. ft. in Delhi-NCR.
According to the head of the real estate fund at Motilal Oswal, Sharad Mittal, this investment aligns with the company’s principles of tying up with leading developers in all major micro markets. ATS already has a time-tested execution and sales track record in a competitive market like the Delhi-NCR according to him and the company is willing to work with a preferred team of developer partners and build multiple relationships across the project portfolio.
According to the Managing Director & Chairman at the ATS Group, Getamber Anand, the Group is delighted to tie up with Motilal Oswal Real Estate and take this precious relationship ahead. Anand also stated that the micro market along the Dwarka Expressway is on the verge of getting re-rated and this makes it a great time for investments here.
The PE firm has pumped in this investment from its India Realty Excellence Fund II and III. The fund had started the journey with a targeted Rs.1,000 crore corpus around two years back and touched the first close last year at Rs.500 crore. Motilal Oswal Real Estate is also on the verge of announcing the final closure of its third real estate fund, which emphasizes on the top-6 metros in the country under its structured and mezzanine equity strategy, which is targeting early-stage investments.
This is the fourth investment of Motilal Oswal Real Estate with the ATS Group. Over the last 3 years, the private equity firm and developer have come up with deals that are worth Rs.300 crore for residential projects. The development comes sometime after Motilal Oswal Real Estate made an exit from its earlier investment of Rs.75 crore in the ATS Pristine project. The investment was made from its India Realty Excellence Fund II, which has committed investments of Rs.650 crore until now and exited around three deals.
The PE firm has targeted Rs.1,000 crore as a deployment fund across target markets in this financial year from its third and second funds. This investment has been made in a scenario where developers are striving to raise necessary capital from financial institutions in order to keep themselves afloat in a hugely sluggish market. There have been several debt deals in the recent past while huge capital from private equity firms and NBFCs have also flowed into the realty sector in the country. The Saha Group has already raised Rs.200 crore from Edelweiss while the Logix Group has also raised debts of around Rs.900 crore from banks. AIPL, which is based in Gurgaon has also received Rs.295 crore in backing from Reliance AIF and the Piramal Group.
