Motilal Oswal Real Estate (MORE), the genuine estate private equity arm of Motilal Oswal Financial Services, plans to raise up to Rs 800 crore by way of its not too long ago launched fifth genuine estate fund ‘India Realty Excellence Fund V (IREF V)’.
The fund will concentrate on delivering debt for building finance to projects which are in post-approval stage. It plans to deploy the capital in mid-earnings and cost-effective residential projects across the major seven cities in India (Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad) whilst selectively investing in industrial projects.
IREF V would concentrate on structured debt investments with established developers and undertake 12-15 transactions of Rs 60-80 crore each and every. MORE expects to obtain very first close by March 2021 and conclude fundraising in the next 6-9 months. Till date MORE has invested capital in the genuine estate sector by way of 4 genuine estate funds and PMS/ NCD investments. At present, MORE’s cumulative assets beneath management stands at more than Es 3,700 crore.
MORE MD & CEO Vishal Tulsyan stated:
“We believe that the sector is undergoing a structural shift and is at the cusp of a transformation. We will continue to grow our presence in this space through value investing over the coming years.”
MORE CEO and director Sharad Mittal, director & CEO as NBFCs place brakes on new lending and banks becoming selective, there has been a big gap in building finance in the genuine estate sector more than the final two years. However, in the final six months, the interest prices have hit a multi-decade low, there has been stagnation in realty rates and also government help by way of stamp duty reductions.
“These factors will lead to a resurgence in residential demand over the next few years. We believe that this is an opportune time to launch our next fund which will focus on construction finance and post-approval funding,”
he stated.