Motilal Oswal to Invest Rs.225 Crore Funds in Residential Real Estate

Real Estate Property News: Motilal Oswal announced that the firm has made a first close of real estate fund, IREF II at Rs. 225 crore which is expected to be invested in residential real estate sector.

Motilal Oswal Real Estate is a part of Motilal Oswal Private Equity that raised a fund, the second India Realty Excellence Fund (IREF) which will be invested in residential real estate. The IREF II has a target of Rs. 300 crore along with a green shoe option of Rs. 200 crore. In 2008, Motilal oswal’s first real estate fund was raised to Rs. 200 crore and the firm invested it in seven projects across various cities such as Bangalore, Mumbai and Pune along with real estate developers like the Godrej Properties, Supreme Universal etc. It is announced that within 12 months from the investment period, 60% of the total capital commitment was returned in IREF I.

In a press release, it is mentioned that the funds from IREF II of Motilal Oswal will be focused on the country’s housing sector with residential projects in top 5 Indian cities such as Delhi NCR, Mumbai, Chennai, Bangalore and Pune. The firm is also planning to partner with other leading property developers for the new residential project. In the press release, Sharad Mittal, the director and head of real estate investments at Motilal Oswal real Estate said that the firm is glad with the response received for the IREF II fund and for the next 12 – 18 months, the company will be focusing on the mezzanine transactions.

This IREF II fund investment in residential real estate is a good start in 2014 for the realty sector, particularly for residential real estate. Now we can expect more projects of leading real estate developers coming up in the metro cities of the country which clearly shows room for realty growth.

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