Motilal Oswal to raise Rs.1000 cr to fund affordable housing projects in Mumbai

Q: The company plans to raise up to Rs 1000 crore fund majorly from high networth individuals (HNIs) and family offices.

Shaunak Verdla, Mumbai

28th October 2015

Real estate News in Mumbai

affordable housing

hnis

pe firm

motilal oswal group

high networth individuals

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Replies (2)

And this is the right time for investors to invest through indirect investing, as the realty sector is going through a consolidation phase and prices are expected to remain stable for some time. As per the company they are participating in the project profits rather than banking completely on the future price rise.

Mritunjoy Deb,

28th October 2015

Comment

But this time the fund has been set up as a SEBI registered AIF Category II Fund and the company has already received the requisite approval from the authorities. The company will invest this fund in both equity and debt.

Abhinandsavalla, Mumbai

28th October 2015

As per the company, revenue from the traditional brokerage business grew only 5.7% and segment profit was down 41.5% y-o-y during the 1st half of FY16. On the other hand, newer businesses such as asset management and housing finance have been growing rapidly.

Mritunjoy Deb,

28th October 2015

The real estate PE fund business, which comes under the asset management segment for the company, has already launched 2-funds which includes retail and institutional broking and will continue to grow in terms of market positioning and profitable market share.

Lokesh Patwa,

29th October 2015

Yes, the company on Friday launched its 3rd real estate fund and plans to raise up to Rs 1000 crore from majorly from high networth individuals (HNIs) and family offices which the company proposes to invest in residential projects in 6-metros.

Lokesh Patwa,

28th October 2015

Comment

It is also came to know that the raised fund will primarily invest in residential projects by established developers in Mumbai Metropolitan Region, NCR, Bangalore, Pune, Chennai and Hyderabad and will target to undertake 10-12 transactions with deal sizes ranging from Rs 80 crore to Rs 120 crore.

Abhinandsavalla, Mumbai

28th October 2015