Motilal Oswal Alternates Closes Two Transactions for Affordable Housing Projects

Motilal Oswal Alternates (MO Alts), the alternative investment arm of Motilal Oswal Financial Services Ltd, has secured investments in two residential projects in Chennai and Pune through its new real estate fund. The company has committed 100 crore to Radiance Realty Developers India Ltd and 90 crore to Mantra Properties and Developers Pvt. Ltd, with the aim of acquiring land to develop affordable housing projects. This move comes as part of its broader strategy to invest in middle-income and affordable residential projects across top cities in India. MO Alts is targeting to achieve a final close of 2,000 crore for its sixth real estate fund, India Realty Excellence Fund VI (IREF VI), by 2024.

Key Takeaways:

• MO Alts has committed 190 crore to two residential projects in Chennai and Pune through its new real estate fund.
• The fund is strategically focused on early-stage investments in middle-income and affordable residential projects across eight major cities in India.
• The company has made 15 investments in 2023-24 with a commitment of 1,016 crore, while exiting 23 investments with a capital of 1,102 crore during the same period.
• MO Alts plans to continue funding developers to acquire land for residential projects, anticipating stable land transactions driven by developers expanding their land banks amidst anticipated interest rate moderation and increasing housing demand.
• The company is targeting to achieve a final close of 2,000 crore for its sixth real estate fund, India Realty Excellence Fund VI (IREF VI), by 2024.
• Anand Lakhotia, co-head of real estate, MO Alts, expects the improvement of connectivity between micro-markets through major infrastructure developments to create new hubs of growth within each city, driving demand for affordable housing.

Statistics:

• MO Alts has provided cumulative investments of 190 crore for two residential projects in Chennai and Pune.
• The company has made 15 investments in 2023-24 with a commitment of 1,016 crore.
• MO Alts exited 23 investments with a capital of 1,102 crore during the same period.
• The new real estate fund, India Realty Excellence Fund VI (IREF VI), is targeting to achieve a final close of 2,000 crore by 2024.
• MO Alts has invested 300 crore in additional commitments since the first close of its new fund at 1,274 crore in February 2024.

Sources:

• "Motilal Oswal Alternates' real estate fund nears Rs 2,000-cr target" by Aishwarya Anand, Mint, August 2023
• "Motilal Oswal Alternates' real estate fund sees 300 crore additional commitments" by Aishwarya Anand, Mint, February 2024
• Provided by SyndiGate Media Inc.