Motilal Oswal Real Estate’s second fund IREF II gets exit worth Rs. 125Crore from Shriram Properties project in Bangalore

Mumbai 28^th October 2018: MotilalOswal Real Estate (“MORE”), the real estate private equity arm of Motilal OswalGroup has exited from an investment with ShriramProperties, a real estate developer in the Bangalore market from its fundIndia Realty Excellence Fund II (IREF II). The exit has been from a residentialproject “Shriram Greenfield” nearWhitefield, Bangalore.

ShriramGreenfield is a ~2 mn sq. ft. residential project being developed across 2phases in Bangalore. Construction commenced in the year 2015 and within just 4years, the first phase has seen significant progress and is nearing completionwhile construction for the second phase is underway. Sales across both phaseshave been robust and cumulatively the project has seen more than 75% of theinventory being sold.

IREF II isa Rs. 500 Cr fund raised by MORE which achieved its final close in April 2015. TheFund invested during the period 2014-2017 and is fully deployed across 14investments (including re-investments). The Fund had invested Rs. 67 Cr. in December 2014 by taking an equity stake in the project and has now exited with an IRR of ~20% and a multiple of 1.87x.

Amidsttough market conditions, the Fund has returned 107.5% of Fund Corpus (including capital and interest) to its investorswithin a short period of just 3.5 years fromits final close. The Fund has another 40%capital invested across its balance 6 investments which would be exitedover the next 2-3 years. IREF II has till date secured 8 complete exits at an averageIRR of 21.2%.

Sharad Mittal, CEO of Motilal Oswal Real Estate said, “Our strategy has always been to partner with trusted developersin top 6 cities and invest in their affordable/ mid-income housing projects throughdifferent structures (equity/ mezzanine) by providing capital at the rightstage and conduct regular monitoring of the project.”

“TheShriram Greenfield Project is a good example of how even in tough marketconditions a project can be successful based on parameters like rightconfiguration and affordable price point, favourable location, the trustassociated with the developer for timely delivery and quality of construction backedby active monitoring of the project.”

“We arehappy to announce that we have returned 107.5% of the Fund corpus back to theinvestors with another 40% capital still at work which we would be exiting overthe next 2-3 years”

“We haverecently announced the first close of our fourth fund IREF IV at Rs. 575 Cr.and we are looking to achieve final close by end of the financial year. Wewould like to thank all our investors for reposing their faith in ourinvestment capability.”

M Murali, Managing Director of Shriram Properties said, “We have always been focused on delivering value to all ourstakeholders. We have worked together seamlessly over the years to create valuefor all our stakeholders and are happy to have provided another profitable exitto Motilal, who are a very valuable partner for us.”

AboutMotilal Oswal Real Estate

Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. (MORE)was founded in 2008 as a 100% subsidiary of MOPE Investment Advisors Pvt. Ltd.(MOPE) – the Private Equity arm of Motilal Oswal Financial Services Limited(MOFSL). MORE is currently managing four real estate funds, namely India RealtyExcellence Fund (IREF), India Realty Excellence Fund II (IREF II), India RealtyExcellence Fund III (IREF III) & India Realty Excellence Fund IV (IREF IV)along with PMS/ Prop Investments. Today, cumulative AUM under MORE stands atmore than Rs. 2,700 Cr. IREF, launched in 2008 is a Rs. 200 Cr domestic realestate fund focused on equity investments in real estate projects in top threecities in India viz. Mumbai, Pune and Bangalore. IREF had made 7 investmentsand has secured exits in all 7 investments. On the back of its success, MORElaunched IREF II – Rs. 500 Cr. domestic real estate fund. IREF II has beenfully committed and has invested with established developers such as ATS Group,Casagrand Group, Shriram Properties, Kolte Patil Developers etc. IREF II hasmade 14 investments till date (including re-investments) and secured 8 fullexits at an investment level IRR of 21.2%. The third fund, IREF III is a Rs.1000 Cr domestic real estate fund focusing on early stage structured/ mezzanineinvestments. Currently in deployment stage, IREF III has made 15 investmentsacross the top 6 cities in India with established developers and secured 3 fullexits at an investment level IRR of 22.1%. The fourth fund, IREF IV is currentlyin fund raising mode with a target size of Rs. 1,500 Cr. IREF IV has been CRISIL rated: Fund Management CapabilityLevel - 1 which reflects ‘highest’ standards in fund management capabilityand investment processes. MORE has won various awards and accolades for itsfunds including CNBC Awaaz Real Estate Awards and India Wealth Awards.

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