Motilal Oswal Alternates (MO Alts), a leading alternative investments arm of Motilal Oswal Financial Services, has made a groundbreaking investment move by raising over Rs 1,750 crore for its sixth real estate fund, known as the India Realty Excellence Fund VI (IREF VI). The remarkable fundraising feat aims to focus on strategic investments across the top eight cities in India, including key metropolises like Mumbai, Pune, Chennai, and Kolkata. By achieving this significant target corpus, the firm showcases its strong foothold in the country’s real estate sector.
MO Alts Unveils Ambitious Investment Plans
The financial powerhouse has committed around Rs 1,300 crore to esteemed developers through its platform in the ongoing financial year, with a substantial Rs 1,000 crore dedicated to projects in prominent cities such as Mumbai, Pune, Chennai, Hyderabad, and Kolkata from the latest fund. Notably, the investments have been carefully curated across mid-income housing projects, with collaborators like Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, and others.
In an exclusive conversation with ET, both Anand Lakhotia, MD & Co-Head of real estate funds, and Saurabh Rathi, MD & Co-Head of real estate funds, highlighted the growth prospects for the Indian real estate sector. The duo emphasized the resilience of the sector, driven by factors such as strong economic fundamentals, stable interest rates, and supportive government policies.
Performance and Growth Indicators
Over the past year, the firm has reported impressive returns, exiting over 11 deals with returns amounting to Rs 1,000 crore. MO Alts has already committed an impressive Rs 1,000 crore across 10 investments with leading developers within 10 months of IREF VI’s first close.
According to the officials, the fund has a robust pipeline under evaluation, positioning itself favorably given tightened regulations on banks and NBFCs, as well as a poised market outlook for the real estate sector. They aim to finalize IREF VI’s fundraising within the next 2 months.
evidence of Market Penetration and Fund Expansion
MO Alts has partnered with well-established developers, further establishing its position as a significant stakeholder in the Indian real estate market. The sector’s growth trajectory is expected to propel the country’s commercial and residential markets.
Another prime indicator of their performance is MO Alts’ ability to bridge the capital gap at the early stages of real estate projects. This valuable role has only contributed to bridging partnerships with major developers. It’s clear the money, the know-how, and strategic partnerships are the pillars to drive business performance.
Renaissance of Trust with Additional Partner Collaborations
The platform currently manages six real estate funds, alongside multiple standalone NCD investments. Their cumulative assets under management (AUM) for real estate now stand at over Rs 9,500 crore. The MO Alts platform has made an impressive 168 investments, secured 100 complete exits, and boasts an overall AUM of over $2 billion across various asset classes.
Conclusion and Implication of these Developments
The remarkable growth, the colossal return, the partnerships, and the involvement of large players within the Indian real estate market create hope and reassurance of the market’s growing sentiment. Moreover, these figures would undoubtedly be a compelling demonstration of what market experts can achieve with sustainable investments into large-scale business conglomerate.
