The fund plans to capitalize on medium-income and affordable housing projects in Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad, while also investing in select commercial projects.
IREF VI, to be set up as an Alternative Investment Fund (AIF) Category II, will focus on structured mezzanine and equity investments with established developers with performance track records and over 25 transactions of Rs 75 crore each .
MO Alternatives is currently awaiting approval from the Securities and Exchange Board of India for the same and the fund-raising process is expected to begin in the next few months.
“Amid rising volatility in the stock markets, inflationary pressures, rising mortgage rates and geopolitical tensions, the real estate market in India remains resilient,” it said. Sharad Mittal, CEO of Real Estate Funds at MO Alternates. “Several factors, such as increasing affordability and increased sentiment value on home ownership, have led to strong housing sales during the past two years. We believe strong fundamental factors combined with government initiatives will be in place in the near future. Will drive up the demand for housing even more.”
Currently, MO Alternatives manages five real estate funds and several standalone NCD Investment. Its cumulative assets under management (AUM) for real estate is over ₹5,500 crore. In real estate, MO Alternatives has made over 100 investments in over 135 projects and achieved 50 complete exits.
In the first half of 2022-23, MO Alternatives has invested over Rs 1,150 crore through its platform in residential and commercial projects in Mumbai, Bengaluru, Chennai, Hyderabad and Delhi-NCR.
MO Alternatives has also achieved eight profitable exits worth ₹450 crore through this platform in the last six months.
“Deal flows have increased over the last two years. While we have committed over ₹1,150 crore in the last six months, we have been cautious and continue to operate within our investment framework. Our successful exits in the last six months were one These are testament to our investment philosophy and pragmatic asset management,” Mittal said.