Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity, today announced the first closure of its second real estate fund, India Realty Excellence Fund II LLP. The Fund has raised Rs 225 crore in three months from its launch in November 2013. The fund aims to raise Rs 300 crore with a Green Shoe option of Rs 200 crore.
IREF II will capitalise on the opportunities by focusing on mezzanine debt transactions which provide regular income through fixed coupon and a subsequent project linked upside. The fund will focus on residential sector in top five cities, that is, Mumbai Metropolitan Regon, National Capital Region, Bangalore, Pune and Chennai partnering with developers having proven track record.
Sharad Mittal, Director & Head Real Estate Investments of Motilal Oswal Real Estate said, "We believe that the next 12-18 months is an interesting period for doing mezzanine transactions. We are currently evaluating few opportunities in line with our strategy and are in the process of concluding them."
The second fund comes on the back of the success of the first fund, India Realty Excellence Fund (IREF) which was raised four years back. IREF has invested in seven projects in Mumbai, Pune and Bangalore with marquee names like Godrej Properties, Supreme Universal and so on. Within 12 months from the end of the investment period, IREF has returned 60% of the total capital commitment.
