Motilal Oswal Real Estate, the private equity real estate arm of Motilal Oswal Finance Rs 63 crore cial Services, will invest in a residential project being developed by Incor Group in Chennai, a top company executive said.
Sharad Mittal, director & head of Motilal Oswal Real Estate, said the company will invest in PBEL City through its third real estate fund, India Realty Excellence Fund III.
The residential project is spread across 33 acres. “Southern market comprises three large markets and we continue to look at fresh opportunities there. It’s a structured mezzanine deal and we expect early 20% kind of IRR (internal rate of return)”, said Mittal.
With this investment, the IREF III would have committed more than half of its Rs 1,000 crore corpus. The fund has made eight investments till date with established developers such as ATS Infrastructure, Shriram Properties, KoltePatil Developers, Phoenix Group and Rajesh Lifespaces across cities like Mumbai, Pune, Bengaluru, Chennai, Delhi-NCR and Hyderabad. “IREF III is targeting full deployment by the end of this year”, said Mittal.
According to data from property consultant Cushman & Wakefield, residential housing across Bengaluru, Chennai and Hyderabad received Rs 1,860 crore of funding from private equity and nonbanking finance companies in the first three months of 2017, as against Rs 630 crore in the year-ago period.