The amount has been committed across projects with developers like Casagrand Group in its residential projects in Chennai and Bengaluru and with Phoenix Group in its project in Hyderabad.
Motilal Oswal Real Estate (MORE), the real estate private equity arm of Motilal Oswal Group, announced on Thursday that it had exited from an investment with Kolte Patil Developers, a real estate developer having operations in the Pune, Mumbai and Bengaluru market.
MORE had invested Rs 58 crore through its funds — India Realty Excellence Fund II (IREF II) and India Realty Excellence Fund III (IREF III) — in December 2015 by taking an equity stake in the project called City Avenue in Wakad, Pune. MORE claims that it has exited the investment with an internal rate of return (IRR) of over 23%.
MORE said it had “exited from an investment with Kolte Patil Developers” and got exit worth Rs 105 crore. “City Avenue is spread across 2.8 lakh sq ft comprising one residential and one commercial tower. The construction for the project commenced in the year 2016 and within just three years, the residential portion has been fully sold and delivered with occupancy certificate while finishing work for the commercial phase is underway,” MORE said.
MORE CEO Sharad Mittal said the firm’s strategy had been to partner with trusted developers in top 6 cities and invest in their affordable/mid-income housing projects through different structures (equity/mezzanine) by providing capital at the right stage and conducting regular monitoring of the project. “We have recently announced the third close of our fourth fund IREF IV at Rs 1,050 crore and we are looking to achieve final close in the next two months,” he said. The fund has made six investments till date.
MORE said in the past 3-4 months, it had committed Rs 280 crore across four investments via its funds, IREF III and IREF IV. The amount has been committed across projects with developers like Casagrand Group in its residential projects in Chennai and Bengaluru and with Phoenix Group in its project in Hyderabad. The ticket size for each of these investments is between Rs 50-80 crore.