Motilal Oswal Alternates Proves Real Estate Magic—Rs 1,050 Crore Exit Leaves Industry Buzzing

Image Source:Realty Plus Magazine

Motilal Oswal Alternates (MO Alternates), the alternative investments division of Motilal Oswal Financial Services, has declared a milestone of raising Rs 1,050 crore through full exits of its second real estate fund, India Realty Excellence Fund II (IREF II). This milestone is a strong outperformance because the fund has delivered a strong gross internal rate of return (IRR) of 18.3%, upholding its disciplined investment strategy in India's mid-income housing sector.

Key Points

The corpus of the fund was Rs 489 crore and was to provide structured capital to developers for mid-income residential schemes in India's prime urban markets.
Overall investments, including reinvestments, totaled Rs 680 crore, with the fund realizing complete exit in accordance with its yield expectations.
Exits were achieved through repayments and project delivery, in line with typical horizons for disciplined real property investments in the mid-income segment.
Key exits and deals consisted of deals by Kolte Patil Developers, Casagrand Group, Shriram Properties, and others.
The portfolio diversification into different cities and developers helped to mitigate the concentration risks, especially under volatile market conditions.

Vishal Tulsyan, MO Alternates Executive Chairman and Co-founder, spoke of disciplined investing, bottom-up views, and proper governance as the forces behind the fund's success.

Saurabh Rathi, MD & Head of Alternative Real Estate Funds at MO Alternates, underlined active asset management and alignment with developers as key fund performance drivers.

The closing of IREF II is a reflection of MO Alternates' faith in the Indian real estate space, which is witnessing rising formalisation, improving balance sheets, and growing institutional flows of capital.

Through this successful exit, MO Alternates reasserts its position as the market leader in structured real estate investment, paving the way for further growth and innovation in India's vibrant property market.

Source: The Economic Times