Ahuja Group raises 60 crore from Motilal Oswal realty fund
India Realty Excellence Fund II LLP, Motilal Oswal’s second real estate private equity fund, has made a fresh investment of 60 crore in housing project of Mumbai-based developer Ahuja Group’s.
The company has raised this fund for deployment in its Ambernath project, in Mumbai’s central suburb, spread across 2.5 million square feet.
The management of Ahuja Group remained unreachable despite several attempts to reach them. An e-mail to the company spokesperson also went unanswered. The legal and tax counsel to Ahuja Group for this transaction was Nishith Desai Associates.
According to a person privy to the development, the deal was closed in early January.
Earlier this month, the first close of this second real estate dedicated private equity fund at 225 crore was announced by Motilal Oswal Real Estate fund, the real estate arm of Motilal Oswal Private Equity.
The fund has been looking to raise 500 crore, with the launch in November 2013, including a green-shoe option of 200 crore. It plans to capitalise on the opportunities by focusing on mezzanine debt transactions which offer regular income through fixed coupon and a subsequent project link upside and is aiming an internal rate of return of 25 per cent.
The fund will chase deals in the residential sector in the top five cities — Mumbai, Delhi NCR, Bangalore, Pune and Chennai, according to Motilal Oswal Real Estate.
Sharad Mittal, Director and Head — Real Estate Investments, Motilal Oswal Real Estate, had said in a press statement released in early March, the fund was currently evaluating some opportunities in line with its strategy and was in the process of concluding them.
The second fund comes on the back of the first fund, India Realty Excellence Fund, which was raised four years back. IREF has invested in seven projects in Mumbai, Pune and Bangalore, and within 12 months from the end of the investment period, has returned 60 per cent of the total capital commitment.
Source: The Hindu Business Line
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