Media Room
Industry News
National Realty e-Magazine

Industry News

Select a year 

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember                Back

Motilal Oswal Real Estate’s IREF II makes two exits worth Rs 110 crore
ET Realty  |  November 14, 2017

Kailash Babar Mumbai

India Realty Excellence Fund II (IREF II), the second real estate fund by Motilal Oswal Real Estate (MORE) has made two exits worth Rs 110 crore from its investments in Bangalore-based developers Skylark Mansions and Mahaveer Developers.


With these two exits, the Rs 500-crore fund has now completed six full exits out of its total 14 investments.


The fund, IREF II had achieved its final close in April 2015 at Rs 500 crore and has till date made 14 investments amounting to Rs 670 crore including re-investments. With these two recent exits, it has completely exited 6 investments at an average Internal Rate of Return (IRR) of 25.7%, MORE said in a release.


According to MORE, within 2.5 years of its final close, the fund has divested around 108% of the fund size and returned 64% of the money back to the investors.


MORE’s third real estate fund India Realty Excellence Fund III (IREF III) that achieved its final close in August 2017 at Rs 1,031 crore is currently in investment phase and has committed over 80% of the capital.


“The last 3-4 years have been tough for the real estate sector with developers battling low sales velocity and low consumer confidence. However, our strategy of partnering with dominant players in each micro-market and focusing on mid-income housing projects (prices ranging between Rs 4,000 - 6,500 per sq ft) has played out well for us,” said Sharad Mittal, Director & Head of Real Estate Funds, MORE.


MORE, a subsidiary of Motilal Oswal Private Equity (MOPE) is the real estate private equity arm of Motilal Oswal Financial Services (MOFSL). It has till date has invested capital in the real estate sector through three real estate funds and non-convertible debentures/ propriety investments. Currently, its cumulative assets under management (AUM) stands at over Rs 2,000 crore spread across IREF (Rs 200 crore), IREF II (Rs 500 crore), IREF III (Rs 1,000 crore) and balance under NCDs / Prop Investments.


“Structural changes in the form of RERA and GST have been introduced to the sector in the past year leading to increased compliance on the part of developers. Consolidation is already being witnessed in the industry post these changes and the industry shall gradually progress towards broader institutional ownership and we believe that our kind of capital shall become much more suited to developers going forward,” Mittal said.