Motilal Oswal Alternates Raises Rs 1,750 Crore for Sixth Real Estate Fund, IREF VI
Motilal Oswal Alternates (MO Alts), the alternative investment division of Motilal Oswal Financial Services, has successfully raised over Rs 1,750 crore for its sixth real estate fund, the India Realty Excellence Fund VI (IREF VI). This marks a significant achievement for the firm as it focuses on investment opportunities across India’s top eight cities, reinforcing its commitment to the country’s growing real estate sector.
The fund has already committed a substantial Rs 1,300 crore to developers in this financial year, with Rs 1,000 crore allocated across key markets such as Mumbai, Pune, Chennai, Hyderabad, and Kolkata. These investments target mid-income housing projects, a growing segment within India’s residential real estate market. Notable developers that MO Alts has partnered with include Ajmera Realty and Runwal Enterprises in Mumbai, Ambuja Neotia Group in Kolkata, Casagrand Group and Radiance Realty in Chennai, Mantra Properties in Pune, BSafal Group in Ahmedabad, Bhagwati & Gami Group in Navi Mumbai, and Candeur Group in Hyderabad. These collaborations are aimed at addressing the rising demand for affordable and mid-range housing across the country.
Saurabh Rathi, Managing Director and Co-Head of Real Estate Funds at MO Alts, spoke on the sector’s resilience, citing the strengthening economic fundamentals, stable interest rates, and supportive government policies. He highlighted how these conditions have led to significant growth in the residential market in 2024. Rathi expressed optimism for continued growth, driven by declining interest rates, increased home loan deployments, and ongoing infrastructure advancements. This positive outlook complements the strategic focus of IREF VI, which aims to capitalise on these favourable market conditions. In addition to these recent investments, IREF VI has already made Rs 1,000 crore in commitments across ten projects within the first 10 months of its first close. The fund has a robust pipeline of opportunities under evaluation and is nearing its fundraising target of Rs 2,000 crore, with 90% of the target already secured. MO Alts has long recognised the potential in bridging the capital gap at the early stages of real estate projects. As the sector continues to grow, the firm remains focused on making strategic investments that generate long-term value. Co-founder and Executive Chairman Vishal Tulsyan emphasised the importance of partnering with established developers to capitalise on emerging opportunities within India’s real estate market.
The platform has already made 168 investments and achieved 100 complete exits, showcasing its ability to generate returns for investors. With cumulative assets under management (AUM) of over Rs 9,500 crore in real estate, MO Alts has become a significant player in the Indian real estate investment landscape. The firm also manages a diverse portfolio across other asset classes, with more than $2 billion in AUM overall. With IREF VI, MO Alts is well-positioned to continue leveraging the momentum in India’s real estate sector, especially in the mid-income housing segment. As the fund progresses, it is expected to further strengthen its portfolio of investments across major Indian cities, providing both growth and stability to investors and contributing to the expansion of the real estate market. This achievement highlights the strong demand for alternative investments in India’s real estate market and showcases the firm’s ability to meet the needs of high-net-worth individuals, family offices, and corporates looking to tap into the country’s thriving property sector.
