MORE invests Rs. 114 cr in Pune & Bangaluru

The real estate arm of Motilal Oswal private equity has made investments worth Rs. 114 crore in two projects – one in Pune and the other in Bangaluru. While Pune based Kolte Patil developers received Rs. 58 crore, Skylark Mansions which is based in Bangaluru collected funds worth Rs. 56 crore.

Motilal Oswal Real Estate (MORE) has partnered with Kolte-Patil Developers’ for a mixed-use project located in Wakad with frontage on the Mumbai-Pune express highway. The investment in Skylark Mansions is for their impending residential project being developed in Hennur Road, Bangalore.

“These fundings are aligned with our strategy of investing with established developers for their mid-income housing projects at city centric locations. Within a year of closing, we have committed the entire capital of IREF II to reputable brands pan India,” said Sharad Mittal, Director and Head, Real Estate Fund, Motilal Oswal Real Estate (MORE).

“Real estate has become an important vertical within our overall private equity business,” said Vishal Tulsyan, MD & CEO, Motilal Oswal Private Equity Investment Advisors  adding that “Motilal Oswal Private Equity now manages more than Rs 3,000 crore across five funds in growth, capital and real estate.”

MORE has recently announced its first complete exit from Mahaveer Developers in Bengaluru at an internal rate of return of around 30%. IREF II had invested Rs 40 crore for their two projects in March 2014.

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Despite a rough market scenario and inadequate interest from limited partners (LPs) in the Indian real estate segment, Edelweiss Alternative Asset Advisors Ltd, is raising up to $1 billion for its first residential real estate fund, confirmed a top executive of the company.

The fund will explore for investment opportunities in five property markets—National Capital Region (NCR), Mumbai, Pune, Bengaluru and Chennai. “We are looking to partner mid-sized developers in real estate projects that have already got the key approvals. The fund will not provide capital to buy land or invest in an early stage of a project,” says Venkat Ramaswamy, executive director and co-head of global asset management, Edelweiss Financial Services Ltd.

Edelweiss has been making investments in real estate projects mainly out of its own balance sheet since last 6-7 years. However as it gears up for a full-fledged fund, it looks to tap investors in Asia, Europe and the US this time. “Edelweiss is a meaningful investor, we have an extremely good team with strong real estate market connects in our five addressed cities, which is essential in terms of deploying and recovery of capital,” Ramaswamy added.