Motilal Oswal launches fifth construction finance fund in India

Motilal Oswal Real Estate (MORE), the real estate private equity arm of Motilal Oswal Financial Services, has launched its fifth real estate fund, India Realty Excellence Fund V (IREF V).

IREF V is seeking to raise up to Rs 800 crore ($105 million) to focus on construction finance in post-approval projects in India. The fund will deploy capital in mid-income and affordable residential projects across the top seven cities in India — Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad. It also will invest selectively in commercial projects as well as focus on structured debt investments with established developers and undertake 12 to 15 transactions.

“In our earlier funds, our investment strategy has been to partner with established developers in early-stage investments through structured debt in their mid-income/affordable housing projects,” said Sharad Mittal, director and CEO of MORE. “We have focused more on IT cities and largely stayed out o