Motilal Oswal Alternates invests ₹190 crore from its new real estate fund
₹190 crore, two company executives told Mint. The company has committed ₹100 crore to Chennai-based Radiance Realty Developers India Ltd, and another ₹90 crore to Pune-based Mantra Properties and Developers Pvt. Ltd, for their respective residential projects.
Both the investments are early-stage bets by MO Alts, where the developers aim to utilise the capital to acquire land, on which they intend to develop residential projects. In August last year, MO Alts had said it will raise ₹2,000 crore via its sixth real estate fund, India Realty Excellence Fund VI (IREF VI). The fund is strategically focussed on early-stage investments in predominantly middle income and affordable residential projects across the top eight cities—Mumbai Metropolitan Region, Delhi-National Capital Region, Pune, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.
The company had achieved the first close of its new fund at ₹1,274 crore, in February this year. “Since the first close, we have received additional commitments of ₹300 crore. MO Alts is targeting to achieve final close of ₹2,000 crore in 2024," Anand Lakhotia, co-head of real estate, MO Alts, told Mint.
“The improvement of connectivity between various micro-markets through major infrastructure developments will create new hubs of growth within each city. There is a strong demand across all segments of the market, from mid-range properties to luxury residences," Lakhotia added. Till date, MO Alts has invested capital in the property sector through five real estate funds.
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