Motilal Oswal Real Estate (MORE) on Thursday announced the second close of its India Realty Excellence Fund IV (IREF IV). The fourth real estate fund closed after raising `850 crore, which was mainly raised from high net-worth individuals and family offices. At present, the cumulative asset under management (AUM) with MORE is above `3,000 crore.
“We have raised `850 crore for the fund within eight months of the launch and we would like to thank our investors for reposing faith in our investment capability. In this fund, we have witnessed repeat commitments from existing investors as compared to our previous funds, ”Sharad Mittal, director and CEO, MORE said.
The fund raised will be deployed in mid-income housing projects across the top six cities in India. A chunk of the amount would also be invested in commercial projects, as mentioned by the company in a release. Out of `850 crore, MORE has already committed `250 crore to four investments in Chennai, Pune, and Hyderabad.
MORE is a part of Motilal Oswal Private Equity (MOPE), which is the alternative investments platform of Motilal Oswal group. The cumulative AUM under MOPE is more than `6,700 crore. The company has seen exits worth around `1,000 crore from 13 investments in its previously launched three funds in the past two years.
MORE has strong connections with established developers in each micro-market through multiple transactions done with the developers from the four funds. Some of the developers who have benefitted from the funds are Casagrand Group, Chennai; Shriram Properties, Bengaluru; Phoenix Group, Hyderabad; Kotle Patil Developers, Pune; ATS Group, Delhi NCR and SD Corp, Mumbai.
“We have a strong pipeline of deals for our fourth fund and expect to completely deploy the fund in FY20,” Mittal said.