Shapoorji Pallonji Real Estate raises Rs 450 crore from Motilal Oswal

Shapoorji Pallonji Real Estate (SPRE) has raised Rs 450 crore from Motilal Oswal Group to fund its two projects.

Motilal Oswal Alternates, the investments arm of Motilal Oswal Group, has committed Rs 450 crore to Shapoorji Pallonji Real Estate. The investment has been made against two projects.

One of the projects is a partially completed, leased and operational commercial project located in Manesar. The other project is a residential township project, launched in 2021 and has seen a positive sales response.

"The investment, which has been made through structured debt instruments will be utilised towards working capital for the project, repayment of debt and to achieve financial closure," Motilal Oswal said in a statement on Monday.

Venkatesh Gopalakrishnan, CEO of Shapoorji Pallonji Real Estate, said the additional funding will strengthen the company's growth story even more by adding significant value to its project pipeline.

Sharad Mittal, CEO of Real Estate Funds, Motilal Oswal Alternates, said, "We have recently concluded a transaction with Shapoorji Pallonji Real Estate through our platform. This marks our first investment with SPRE. The investment is in line with our strategy to partner with established and credible developers for their mid-income housing projects".

Motilal Oswal Alternates currently manages five real estate funds and multiple standalone NCD investments. Its cumulative assets under management for real estate currently stands at more than Rs 6,000 crore. In real estate, more than 100 investments have been made across more than 135 projects and secured 50 complete exits.

With a development potential of over 113 million square feet, SPRE has made inroads into most Indian cities -- Mumbai, Pune, Bangalore, Gurugram, and Kolkata -- with a variety of developments from luxury apartments and residences to aspirational homes for mid-income homebuyers as well as one of the largest mass housing projects in India.