India: Motilal Oswal exits two more companies from second fund

India Realty Excellence Fund II (IREF II), the second real estate fund by Motilal Oswal Real Estate (MORE), has exited two more investments, according to a statement.

It has exited a couple of projects of Skylark Mansions and Mahaveer Developers in November, the company said. With the fresh exits, MORE has completed six full exits from its second fund with an average IRR of 25.7 per cent.

IREF II, which invested Rs 60 crore in Skylark in 2015, had recently raised Rs 105 crore from Xander Finance and provided an exit to Motilal Oswal Real Estate.

The PE firm did not announce its investment in Mahaveer Developers.

“The last 3-4 years have been tough for the real estate sector with developers battling low sales velocity and low consumer confidence. However, our strategy of partnering with dominant players in each micro-market and focusing on mid-income housing projects (prices ranging between Rs 4000 – 6500 per sft) has played out well for us,” said Sharad Mittal, director and head of real estate funds at MORE.

India Realty Excellence Fund III (IREF III), the third real estate fund by MORE which achieved its final close in August 2017 at Rs 1031 crore, is currently in investment phase and has committed more than 80 per cent of the capital.

Mittal added that MORE has forged strong relationships with its development partners by providing them capital at the right stage (early stage investments). In the past four years, it has done multiple transactions with developers, such as ATS Group, Casa Grande and Shriram Properties, through its three funds.

MORE, a subsidiary of Motilal Oswal Private Equity (MOPE) is the real estate private equity arm of Motilal Oswal Financial Services (MOFSL). Its cumulative assets under management if Rs 2,000 crore.

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