Real Estate arm of Motilal Oswal made Rs 105 crore exit from Pune Project
Real Estate private equity arm of Motilal Oswal Group – Motilal Oswal Real Estate has made an exit worth Rs 105 crore in a project from Pune based Kolte Patil Developers.
The investment was made through two of its India Realty Excellence Funds II and III in City Avenue project in Pune, Wakad.
The project comprises of one residential and one commercial tower and is spread over 2.8 lakh sq ft. Started in 2016, the residential portion has wholly sold off while finishing work of the commercial phase is underway.
In December 2015, MORE had invested Rs 58 crore in the project through an equity stake and now exited with an internal rate of return (IRR) of over 23%.
CEO of Motilal Oswal Real Estate, Sharad Mittal said, “Our strategy has always been to partner with trusted developers in top 6 cities and invest in their affordable and mid-income housing projects through different structures including equity and mezzanine by providing capital at the right stage and conduct regular monitoring of the project.”
Second fund IREF II was launched by MORE in April 2015 that achieved Rs 500 crore and has made a total of 14 investments till now. It also has secured exits average of IRR of 21.4% and has returned 129% till its final close.
Motilal Oswal Real Estate said the that the fund has another 30% capital invested across its balance four investments and is expected to divest over next year.
Third fund IREF III was launched by MORE achieved Rs 1,000 crore in its final close in August 2017 and has made 22 investment and has secured six exits at an average IRR of 22.4%. The fund has returned 26% of fund corpus within two years in its final close.
Fourth fund IREF IV was launched by MORE has received Rs 1,050 crore investment and has so far six investments. The final close is expected in the next two months.