Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Financial Services, on Wednesday announced the first close of India Realty Excellence Fund VI (IREF VI), its sixth real estate fund. The fund has received commitments of Rs 1,250 crore in the first close, it said. The fund was launched with a target corpus of Rs 2,000 crore, including a green shoe option of Rs 500 crore.
IREF VI will strategically focus on early-stage investments, predominantly in mid-income/affordable residential projects across Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad.
Funds have been raised from high net worth individuals, non-resident Indians and family offices/corporates. IREF VI has been set up as an alternative investment fund (AIF Category II).
Motilal Oswal Alternates has till date invested in the real estate sector through five funds. It has undertaken more than 150 investments and funded Rs 7,500 crore across 50 developers. It has also exited more than 85 investments and generated an internal rate of return of more than 20% from pre-approval bets.
Vishal Tulsyan, MD & CEO, Motilal Oswal Alternates, said: “This marks the largest and the fastest first close for our real estate funds. This successful fundraise amid a bullish equity market underscores the unwavering confidence our investors have placed in our capabilities. We are very optimistic about the real estate market as we foresee a period of robust growth. Moving forward, we are committed to strengthening our position as a leading capital provider for the real estate sector by capitalising on a myriad of opportunities in the years to come.”
