Motilal Oswal Alternates to launch new fund soon; garners ₹850 cr from 14 exits so far this fiscal

Asset management platform, Motilal Oswal Alternates (MOA) is likely to launch a new fund by infusing a somewhat ₹2,000 crore corpus by March this year. The company had recently committed a similar corpus for realty projects during this fiscal so far. Also, the company has made 14 profitable exits worth ₹850 crore during the first nine months of FY23.

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 ₹2,000-crore fund towards the end of this fiscal. That apart, we have also plans to commit another ₹500 crore through the remainder of the current financial year," reported PTI.

Mittal also revealed that the fund has witnessed 14 profitable exits aggregating to ₹850 crore in 9MFY23.

In the report, Mittal highlighted that MOA's investment commitments are for residential and commercial projects spanning Mumbai, Pune, Bangalore, Chennai, Hyderabad, and Delhi-NCR.

These investments will be made with a host of companies such are --- 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 needs to be noted that the residential project is a mixture of villas and apartments for the affordable/ mid-income segments across these cities.

MOA currently manages five real estate funds and multiple standalone NCD investments. 

As per Mittal, MOA’s cumulative assets under management for real estate currently stand at more than ₹6,500 crore. In real estate, MOA has made more than 110 investments across over 149 projects and secured around 55 complete exits.

In November last year, MOA committed ₹450 crore to Shapoorji Pallonji Real Estate. The investment was made against two projects. The investment, which has been made through structured debt instruments will be utilized towards working capital for the project, repayment of the debt, and achieving financial closure.

MOA is the alternative investment arm of Motilal Oswal Financial Services, comprising real estate and sector-agnostic funds. MOA has been investing in the Indian real estate space since 2009.

MOA through its funds has partnered with leading developers in India including Casagrand Builders, M3M/ Smartworld Group, Kolte Patil Developers, Shriram Properties, Phoenix Group, Ashwin Sheth Group, Marathon Group, etc. in the past.

(With inputs from PTI)