India’s Motilal Oswal Real Estate invests $74m across nine deals

Photo: Pixabay

Motilal Oswal Real Estate, the real estate investment arm of Motilal Oswal Private Equity Advisors Pvt. Ltd (MOPE), has invested 518 crore across nine deals, mostly in residential projects, a senior executive said.

The investment comes at a time when the housing sector is facing a slowdown in sales and a squeeze in liquidity from non-bank lenders.

The investments have been made from MOPE’s Indian Realty Excellence Fund or IREF-IV. The fund, which invests in mid-income residential projects and selectively in mid-sized commercial office projects, is in the last lap of raising capital. It has raised 1,100 crore since it was launched in mid-2018, largely from high-networth investors and family offices, and is expected to make a final close at 1,200 crore next month.

The new fund, like those previously, has focused on smaller deals, mainly in the range of 40-80 crore each. The investments have been made in projects of developers such as Chennai’s Casagrand Group, Ashoka Builders and Phoenix Group in Hyderabad, and Pune’s Montvert Group.

Despite the opportunities in the market, one needs to be careful as a fund manager, Mittal said.

The cumulative assets under management (AUM) of MOPE combining its funds and portfolio management services is around 3,500 crore.

In 2019, while commercial office projects saw robust interest along with newer sectors such as warehousing and logistics, the residential sector had a different reality.

The five-year-long slowdown, and the liquidity crisis among non-banking financial companies (NBFCs) has squeezed fund supply for many developers.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.