Motilal Oswal Alternates, the investments arm of Motilal Oswal Group, on Thursday (August 17) said it's planning to raise up to Rs 2,000 crore through its recently launched sixth real estate fund "India Realty Excellence Fund VI (IREF VI)."

IREF VI will strategically focus on early-stage investments in mid-income or affordable residential projects across India's top 8 cities, including Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad. Additionally, selective investments in commercial projects will be pursued.

Building on the success of its previous real estate funds, Motilal Oswal Alternates is further strengthening its presence in the real estate sector with a focus on early-stage investments.

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Motilal Oswal Alternates to date, has invested capital in the real estate sector through five real estate funds. The firm also manages other standalone and proprietary investments.

The company is a seasoned real estate manager and has to date undertaken more than 140 transactions and funded Rs 7,500 crore across 50 developers in India. It has successfully exited more than 70 transactions and generated an IRR of more than 20 percent in these exits.

The fund has been set up as an alternate investment fund (AIF Category II) registered with the stock market regulator SEBI. Motilal Oswal Alternates expects to achieve the first close by December 2023 and complete the fundraising process within the following 6-9 months. The cumulative AUM under Motilal Oswal Alternates is more than $2 billion.

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Vishal Tulsyan, MD and CEO of Motilal Oswal Alternates said the company is incredibly optimistic about the real estate market, foreseeing it as a prime period for growth.

Saurabh Rathi, co-head of real estate funds, said, "Our focused ground-up approach to investing, frugal underwriting, and proactive asset management practices have helped us create the right levers for the next phase of growth in this tail-winded environment for real estate."