Alternative Investment

mo alternates: MO Alternates to launch Rs 2,000-cr realty fund by March; earns Rs 850 cr from 14 exits this fiscal

Motilal Oswal Alternates, which has already committed Rs 2,000 crore to realty projects during this fiscal so far, is planning to launch a new fund with similar investible corpus by March. Sharad Mittal, chief executive of real estate funds at MO Alternates, said, “in addition to the money already committed, we plan to launch a new Rs 2,000-crore fund towards the end of this fiscal. That apart, we have also plans to commit another Rs 500 crore through the remainder of the current financial year.”

He said the fund has also made 14 profitable exits worth Rs 850 crore during the first nine months of the current fiscal.

The alternative investment arm of the Motilal Oswal Group said the investment commitments are for across residential and commercial projects spanning Mumbai, Pune, Bangalore, Chennai, Hyderabad and Delhi-NCR.

These investments are with Shapoorji Pallonji in Pune; Casagrand Group and Arihant Group in Chennai; M3M/ Smartworld Group in Delhi-NCR; Marathon Group in Mumbai; Puravankara Group, Casagrand Group, Alliance Group and Pacifica Group in Bengaluru; and Honer Homes and Alliance Group in Hyderabad, it said in a statement on Tuesday.

The residential projects are a mix of villas and apartments in the affordable/ mid-income segments across these cities.

MO Alternates currently manages five realty funds and multiple standalone debt investments and its assets under management for real estate are more than Rs 6,500 crore. In real estate, it has made 110 investments across 149 projects and secured 55 complete exits so far, Sharad Mittal, chief executive of the real estate funds at MO Alternates, said.

Its second real estate fund of Rs 489 crore, which achieved its final close in 2015, has till date made 14 investments and secured 11 exits with an average return of 21.2 per cent, while its third realty fund, of Rs 1,031 crore, which achieved its final close in 2017, has till date made 26 investments and secured 15 exits on a return of 21 per cent and its fourth realty fund of Rs 1,148 crore, after its final close in 2020, is currently under deployment and has till date made 29 investments and secured 12 exits offering 20.6 per cent to investors.

Its fifth realty fund of Rs 1,215 crore, which achieved its final close in 2021, is currently under deployment and has so far made 16 investments and secured two exits offering 19.8 per cent to investors.

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