Key Takeaways
- • Motilal Oswal Alternates' India Realty Excellence Fund IV (IREF IV) has fully exited all 37 investments, delivering a 20.4% portfolio internal rate of return (IRR) in rupee terms, according to the alternative investment arm's statement on Thursday.
- • The ₹1,155-crore domestic real estate fund, launched in 2020, provided structured capital to established developers at the pre-approval stage across seven cities.
- • The fund's portfolio spanned developers including Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.
- • The fund navigated Covid-19, rising interest rates, input cost inflation, geopolitical tensions in the Middle East, and related pressure on sales, collections, funding and construction timelines.
- • Managing Director and Co-Head of Real Estate Saurabh Rathi attributed the outcome to diversification across 37 investments and seven cities, stating that no single project or market defined the result.
Summary
Motilal Oswal Alternates, the alternative investment arm of Motilal Oswal Group, said on Thursday that its real estate fund, India Realty Excellence Fund IV (IREF IV), has fully exited all 37 of its investments. The fund delivered a portfolio internal rate of return of 20.4%, which the firm said was in line with its return objective. IREF IV is a ₹1,155-crore domestic real estate fund launched in 2020.
The fund provided structured capital to established developers at the pre-approval stage across seven cities. Its co-investment partners included Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.
The fund's lifecycle was marked by several disruptions, including the Covid-19 pandemic, rising interest rates and input costs, and geopolitical tensions and conflicts in the Middle East. According to MO Alternates, these factors pressured residential sales and collections, funding availability, construction costs and project execution timelines. The manager said its strategy during this period centred on capital protection, disciplined underwriting and active asset management.
Saurabh Rathi, Managing Director and Co-Head of Real Estate at MO Alternates, said diversification across 37 investments and seven cities meant that no single project or market could define the fund's outcome. He said the team stayed closely engaged with developer partners through the Covid disruption and waited for greater clarity on sales, collections and construction before deciding on individual investments. "In real estate credit, performance is not decided at underwriting; it is managed every single day," Rathi said.
The fund provided structured capital to established developers at the pre-approval stage across seven cities. Its co-investment partners included Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.
The fund's lifecycle was marked by several disruptions, including the Covid-19 pandemic, rising interest rates and input costs, and geopolitical tensions and conflicts in the Middle East. According to MO Alternates, these factors pressured residential sales and collections, funding availability, construction costs and project execution timelines. The manager said its strategy during this period centred on capital protection, disciplined underwriting and active asset management.
Saurabh Rathi, Managing Director and Co-Head of Real Estate at MO Alternates, said diversification across 37 investments and seven cities meant that no single project or market could define the fund's outcome. He said the team stayed closely engaged with developer partners through the Covid disruption and waited for greater clarity on sales, collections and construction before deciding on individual investments. "In real estate credit, performance is not decided at underwriting; it is managed every single day," Rathi said.
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