PE firm Motilal Oswal Real Estate exits Pune project

PE firm Motilal Oswal Real Estate exits Pune project

Motilal Oswal Real Estate or MORE, the real estate private equity arm of Motilal Oswal Group, has exited a project of listed firm Kolte Patil Developers at Rs 105 crore, the company said in a statement.

MORE had invested Rs 58 crore equity money in the project City Avenue through its India Realty Excellence Fund II and IREF III in December 2015. It has now exited at a 23% internal rate of return (IRR).

City Avenue, spread across 2.8 lakh square feet in Pune, comprises one residential and one commercial tower. The project, whose construction commenced in 2016, sold out fully within a span of three years.

At a time when fresh disbursements by NBFCs and housing finance firms have slowed down considerably, MORE has been actively assessing new propositions. In the last 3-4 months, it committed Rs 280 crore across four investments through its funds IREF III and IREF IV, the statement said.

This amount has been committed across projects with developers like Casagrand Group and Phoenix Group.

“Our strategy has always been to partner trusted developers in top 6 cities and invest in their affordable/mid-income housing projects through different structures (equity/ mezzanine),” said Sharad Mittal, chief executive, MORE.

The firm recently achieved third close of its fourth fund IREF IV at Rs 1,050 crore and is looking to achieve final close in the next 2 months.

“We are looking forward to partner MORE on future projects,” said Gopal Sarda, chief executive, Kolte Patil Developers.

IREF II achieved its final close in April 2015 at Rs 500 crore and has till date made 14 investments. The fund has secured 10 exits at an average IRR of 21.4%.

IREF III achieved its final close in August 2017 at Rs 1,000 crore and has till date made 22 investments. The fund has secured 6 exits at an average IRR of 22.4%.

IREF IV has made 6 investments till date.

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