Motilal Oswal Real Estate (MORE) on Thursday released the second close of its India Realty Excellence Fund IV (IREF IV). The fourth real estate fund closed after raising `850 crore, which was mainly raised from high net-worth individuals and family offices. Presently, the cumulative asset under management (AUM) with MORE is above `3,000 crore.
As reported by Financial Express, the CEO of MORE, Sharad Mittal said they have raised `850 crore for the fund within eight months of the launch and would like to thank our investors for reposing faith in our investment capability. In this fund, MORE have witnessed repeat commitments from existing investors as compared to its previous funds.
The fund raised will bring in mid-income housing projects across the top six cities in India. A chunk of the amount would also be invested in commercial projects, as mentioned by the company in a release. Out of 850 crore, MORE has already committed 250 crore to four investments in Chennai, Pune, and Hyderabad.
MORE is a part of Motilal Oswal Private Equity (MOPE), which is the alternative investments platform of Motilal Oswal group. The cumulative AUM under MOPE is more than `6,700 crore. The company has seen exits worth around `1,000 crore from 13 investments in its previously launched three funds in the past two years.
MORE has strong connections with established developers in each micro-market through multiple transactions done with the developers from the four funds. Mittal said they have a strong pipeline of deals for their fourth fund and expect to completely deploy the fund in FY20.
