Motilal Oswal Alternates' closes sixth real estate fund at Rs 1,250 crore

Motilal Oswal Alternates (MO Alts), the alternative investments arm of Motilal Oswal Financial Services Limited, has closed its sixth real estate fund, India Realty Excellence Fund VI (IREF VI). The fund, which was launched with a target corpus of Rs 2,000 crore (including a green shoe option of Rs 500 crore), has garnered commitments totalling approximately Rs 1,250 crore in its initial closing phase.

The achievement underscores MO Alts' prowess in the real estate investment landscape, with the firm having previously deployed capital through five real estate funds and managing various standalone and proprietary investments in the sector. With a track record of more than 150 investments and funding exceeding Rs 7,500 crore across 50 developers in India, MO Alts has demonstrated its expertise in navigating the complexities of the real estate market.

IREF VI is strategically positioned to focus on early-stage investments primarily in mid-income and affordable residential projects across India's top 8 cities, including Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad. This targeted approach reflects MO Alts' commitment to capitalising on opportunities in high-potential markets and segments within the real estate sector.

The fund's investor base comprises high net worth individuals, non-resident Indians, and family offices/corporates, highlighting the diverse sources of capital attracted by MO Alts' investment strategies. Structured as an alternative investment fund (AIF Category II), IREF VI is designed to offer investors exposure to promising opportunities in the real estate market while adhering to regulatory frameworks.

“This marks the largest and the fastest first close for our real estate funds to date. This successful fund raise amidst a bullish equity market underscores the unwavering confidence our investors have placed in our capabilities. We are very optimistic about the real estate market as we foresee a period of robust growth ahead. Moving forward, we are committed to strengthening our position as a leading capital provider for real estate sector by capitalising on a myriad of opportunities in the years to come,” said Vishal Tulsyan, MD & CEO, MO Alts.