Real Estate

Motilal Oswal Real Estate funds make Rs 105 crore exit from Pune project


MUMBAI: Motilal Oswal Real Estate, the real estate private equity arm of Motilal Oswal Group has made an exit worth Rs 105 crore from an investment in a project of Pune-based builder Kolte Patil Developers.

The investment was made through two of its funds India Realty Excellence Fund II (IREF II) and India Realty Excellence Fund III (IREF III) in a project called City Avenue in Pune’s Wakad locality, the fund said in a release.

The project 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 the residential portion has been sold completely, while finishing work for the commercial phase is underway.

MORE had invested Rs 58 crore in this project in December 2015 by picking up an equity stake in the project and has now exited with an internal rate of return (IRR) of over 23%.

“Our strategy has always been to partner with trusted developers in top 6 cities and invest in their affordable and mid-income housingNSE 8.90 % projects through different structures including equity and mezzanine by providing capital at the right stage and conduct regular monitoring of the project,” said Sharad Mittal, CEO of Motilal Oswal Real Estate.

IREF II is the second fund launched by MORE that achieved its final close in April 2015 at Rs 500 crore and has till date made 14 investments. The fund has secured 10 exits at an average IRR of 21.4%. it has returned 129% of fund corpus within 4 years from its final close. The fund has another 30% capital invested across its balance 4 investments that is likely to be divested over the next 1 year, Motilal Oswal Real Estate said.

IREF III is the third fund launched by MORE which achieved its final close in August 2017 at INR 1,000 Cr and has till date made 22 investments. The Fund has secured 6 exits at an average IRR of 22.4%. The Fund has returned 26% of fund corpus within a period of 2 years from its final close.

IREF IV is the fourth fund launched by MORE that has recently achieved its third close at Rs 1,050 crore and it has so far made 6 investments. “We are looking to achieve final close in the next 2 months,” Mittal said.