Motilal Oswal secures Rs 1,250 cr in first close for AIF real estate fund

Motilal Oswal Alternates (MO Alts), the alternative investments arm of Motilal Oswal Financial Services, on Wednesday said it has successfully closed the first tranche of its sixth real estate fund, India Realty Excellence Fund VI (IREF VI) and has secured commitments of approximately Rs 1,250 crore in this first close.

The company said it is a significant milestone for MO Alts, achieving the largest and fastest first close for any of their real estate funds to date.

The fund will scout for opportunities in real estate in Kolkata and seven other top cities of India including Mumbai, Delhi-NCR, Pune, Bangalore and Chennai.

IREF VI strategically focuses on early-stage investments, primarily targeting mid-income/affordable residential projects across India's top eight cities.

"This successful fundraising, even amidst a buoyant equity market, underscores the unwavering trust our investors have placed in our capabilities," MO Alts, MD & CEO, Vishal Tulsyan said.

MO Alts said it boasts a strong track record, having invested in over 150 real estate projects, funding Rs 7,500 crore across 50 developers, and successfully exited over 85 investments with an impressive return exceeding 20 per cent over pre-approval bets.

The fund, structured as an Alternative Investment Fund (AIF Category-II) the first close (which is commonly referred to as an initial offer) saw participation from high net-worth individuals, non-resident Indians, and family offices/corporates.

With the proposal to quash the Urban Land Ceiling Act by the West Bengal government, the investment opportunities in the state will jump significantly, realtors said.

Saurabh Rathi, Co-Head (Real Estate) at MO Alts said, "The Indian real estate market has shown remarkable resilience and growth in recent years. The residential sector is witnessing decadal high demand, and the office market is experiencing strong absorption, nearing pre-pandemic peaks. With indicators suggesting continued momentum, the demand for early-stage capital is increasing significantly.