Motilal Oswal Real Estate Raised Rs 575 Crore For Affordable Housing Project
Motilal Oswal Real Estate (MORE) said it has raised Rs 575 crore for its fourth realty fund and the amount will be invested mainly in housing projects across six major cities.
MORE is part of Motilal Oswal Private Equity, which is the alternative investments platform of Motilal Oswal Group. The total assets under management (AUM) under Motilal Oswal Private Equity are more than Rs 5,000 crore.
MORE would deploy the capital in mid-income/affordable residential projects across the top six cities in India while selectively investing in commercial projects, it added.
We have raised Rs 575 crore for the fund within three months of launch and we would like to thank our investors for reposing faith in our investment capability. In this fund, we have also witnessed repeat commitments from many existing investors from our previous funds, said Director & CEO of MORE.
He said there is an early sign of a recovery in the housing segment, helped by the new realty law RERA and the government’s schemes to boost affordable housing.
Nearly 75 per cent of the new units launched is priced under Rs 75 lakh while apartment sizes over the years have fallen by over 12 per cent showing the developer’s affinity towards affordable housing.
While sales are showing modest improvement, prices in all major cities are still stagnant or trending downwards as developers endeavour to address the inventory overhang. All these factors indicate early signs of a volume-based recovery in the residential real estate, he added,
Under this strict RERA regime, he said the small-sized developers have found the task of completing their stalled projects very daunting.
This has manifested into a huge opportunity for large and organised players as these small developers will eventually sell their projects at distressed valuations. These are the opportunities where we believe our kind of capital will be required by the established players going forward, he added.
MORE had earlier funded many developers like Casagrande Group 6 investments (Chennai), ATS Infrastructure 5 investments (Delhi-NCR), Rajesh Lifespaces 3 investments (Mumbai) and Shriram Properties 2 investments (Bangalore).
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