Motilal Oswal to Invest in 300 Crores in three Projects

Mumbai News

The real estate private equity firm of Motilal Oswal group, i.e. the Motilal Oswal Real Estate [MORE] has decided to invest over Rs. 300 crores in Mumbai, Pune and Chennai. These investments are being made with realty developers and two of them via their company funds.

The Oswal group inked their first investment with both SD Corp and Mont Vert Developers. The company invested in affordable and mid-income residential projects of S D Corp, a joint venture between Shapoorji Pallonji and Dilip Thacker Group in Mumbai, with Casagrand Group in Chennai, and with Mont Vert Developers in Pune.

Sharad Mittal, CEO Motilal Oswal Real Estate [MORE] said that we are being cautious and précised while choosing investments locations. The company is making a handsome profit from the past one and a half year by investing funds wisely. In November last month, the company second fund India Realty Excellence Fund II (IREF II) exited an investment with Shriram Properties at an internal rate of return (IRR) of around 20% and a multiple of 1.87 times.

The CEO further said that we believe that as the NBFCs and HFCs improve their asset-liability mismatches, the liquidity scenario will give a major boost to the realty sector and the industry will receive the much-needed funding.

CEO Mittal also said that the Motilal Oswal Real Estate will continue to stay focused on its strategy to invest in joint ventures with established developers in top six cities to invest in affordable and mid-income housing projects via different structures that include equity and mezzanine by providing capital at appropriate time and by conducting timely monitoring of the project.

The IREF III, MORE’s third fund has achieved its final close in August 2017 at Rs. 1,031 crores and till date, they made 17 investments that also include reinvestments. The fund also secured three complete exits at an average IRR of 22.1% till date.

The IREF IV, MORE’s fourth fund launched has the target of Rs. 1,500 crores that achieved its first close at Rs. 575 crores. The fund has made one investment till now. The company is currently managing four real estate funds, IREF, IREF II, IREF III and IREF IV, apart from the proprietary investments with cumulative assets under management worth more than Rs. 2,800 crore.