1. Business

Motilal Oswal’s PE arm exits Kolte Patil Developers with 23 % IRR

Motilal Oswal Actual Property (MORE), the actual property non-public fairness arm of Motilal Oswal Group, has exited from an funding in Kolte Patil Builders.

MORE had invested Rs 58 crore by way of its funds IREF II and IREF III in December 2015 by taking an fairness stake in a undertaking and has now exited with an IRR of greater than 23 per cent.

Kolte Patil is an actual property developer having operations in Pune, Mumbai and Bangalore markets. The funding was made by way of two funds – India Realty Excellence Fund II (IREF II) and India Realty Excellence Fund III (IREF III) – in a undertaking known as Metropolis Avenue, which is adjoining to the Kolte Patil undertaking Western Avenue in Wakad, Pune.

Metropolis Avenue is unfold throughout 2.eight lakh sq ft and includes one residential and one industrial tower. The development for the undertaking commenced in 2016 and inside simply three years, the residential portion was totally bought and delivered with OC. Work on the industrial portion is underway.

IREF II is the second fund launched by MORE and achieved its closing shut in April 2015 at Rs 500 crore. Until date the fund has made 14 investments and has secured 10 exits at a mean IRR of 21.Four per cent.

The fund has returned 129 per cent of fund corpus inside 4 years from its closing shut. The fund has one other 30% capital invested throughout its remaining 4 investments which might be divested over the following one yr.

IREF III is the third fund launched by MORE. It achieved its closing shut in August 2017 at Rs 1,000 crore and has until date made 22 investments. The fund has secured 6 exits at a mean IRR of 22.4% and has returned 26% of fund corpus inside a interval of two years from its closing shut.

IREF IV, the fourth fund launched by MORE, lately achieved its third shut at Rs 1,050 crore. The fund has made 6 investments until date.

At a time when recent disbursements by NBFCs and HFCs have slowed down significantly, MORE has been actively assessing new propositions. Within the final three-four months, MORE has dedicated Rs 280 crore throughout 4 investments by way of its funds IREF III and IREF IV.

This quantity has been dedicated throughout tasks with builders like Casagrand Group (in its residential tasks in Chennai and Bangalore) and with Phoenix Group in its undertaking in Hyderabad. The ticket dimension for every of those investments is between Rs 50-80 crore.

“We’ve got lately introduced the third shut of our fourth fund IREF IV at Rs 1,050 crore and we wish to obtain closing shut within the subsequent 2 months,” mentioned Sharad Mittal, CEO, Motilal Oswal Actual Property.

Comments to: Motilal Oswal’s PE arm exits Kolte Patil Developers with 23 % IRR