Motilal Oswal Alternates (MO Alts), the alternative investments arm of Motilal Oswal Financial Services Limited, has announced its strategic move to garner up to Rs 2,000 crore with the launch of its latest real estate fund, named India Realty Excellence Fund VI (IREF VI). This development marks the sixth installment in the company’s series of real estate funds, with a distinct focus on early-stage investments within mid-income and affordable residential projects. The targeted scope encompasses India’s major urban centers, encompassing Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad.
MO Alts’ investment strategy includes prudent selection of commercial ventures in addition to its primary residential project emphasis, according to an official statement sourced from Money Control. The fund operates as an alternate investment fund (AIF Category II) and has received regulatory clearance from the Securities and Exchange Board of India. The first phase of fundraising is projected to culminate by December 2023, with the entire fundraising process anticipated to span six to nine months thereafter.
Vishal Tulsyan, the CEO and Managing Director of MO Alts, expressed steadfast confidence in the real estate sector’s trajectory. He stated, “We firmly believe that the real estate sector has undergone a robust structural recovery, underpinned by strong fundamentals, paving the way for a momentum-led growth trajectory.” Tulsyan conveyed optimism about the upcoming decade, asserting their dedication to solidifying their position in this dynamic industry.
Anand Lakhotia, Co-head of Real Estate Funds at MO Alts, highlighted the company’s investment modus operandi. This involves strategic partnerships with established developers, wherein structured debt is employed to finance mid-income and affordable housing projects. The efficacy of this strategy has been underscored by successful outcomes, especially in technology-driven cities.
Having managed five prior real estate funds, MO Alts is a seasoned player in the sector. In addition to these funds, the firm oversees a portfolio of standalone and proprietary investments, boasting an impressive track record of over 140 transactions and funding projects worth Rs 7,500 crore across a spectrum of 50 Indian developers. Moreover, the company touts a commendable exit record of over 70 transactions, delivering an internal rate of return surpassing 20 percent.