Motilal Oswal Real Estate raises Rs 650 cr for realty fund IREF V

Motilal Oswal Real Estate (MORE), a part of Motilal Oswal Private Equity (MOPE), declared that it has raised Rs 650 crore fund and proposes to deploy the capital in mid-income or affordable residential projects over the top seven cities in India for the fifth realty fund. MORE told the media that they have funded 89 projects through their real estate funds and non-convertible debentures (NCD) investment. They have successfully exited 33 investments. The company’s total Assets Under Management (AUM) is over Rs 4,400 crore including India Realty Excellence Fund V (IREF V). IREF V will concentrate on providing senior secured debt in post-approval projects. Over its complete fund life, IREF V would undertake 12 to 15 transactions. The fund has been raised through high net worth individuals and family offices. The fund is established as an alternative investment fund. Motilal Oswal Real Estate CEO Sharad Mittal said that with the fund, they have repositioned to provide capital requirements during the project life-cycle providing an entire financing solution and becoming the preferred financial partner for real estate developers. Further, he added that over the last two years there has been a large gap in construction finance available in the sector in accordance with the Non-Banking Financial Company (NBFC) crisis and now the Covid-19 pandemic. In the last two quarters of FY2021, many developers have timed record sales. It has already ended its first investment in IREF V with Shriram Properties in Bengaluru and has a number of deals that it is currently assessing. MORE is an alternative investment platform of Motilal Oswal Financial Services Ltd. The cumulative AUM under Motilal Oswal Private Equity is more than Rs 7,500 crore. Image Source Also read: Realty fund managers float schemes for construction finance Also read: Sharad Mittal, Director and CEO, Motilal Oswal Real Estate