Motilal Oswal PE invests $18M in Rajesh Lifespaces’ Powai project

Motilal Oswal Real Estate (MORE), the real estate investment arm of Motilal Oswal Private Equity, has invested Rs 113 crore ($17.9 million) in an ongoing residential project of Mumbai-based developer Rajesh Lifespaces by subscribing to listed non-convertible debentures (NCD), as per a disclosure note.

The investment has gone to special purpose vehicle (SPV) Rajesh Estates and Nirman Private Limited, a group company of Rajesh Lifespaces. The proceeds will be used for the completion of Raj Grandeaur, an ongoing residential project located in Powai, Mumbai. The project offers 3 and 4 BHK apartments spread across three wings in a 30-storey tower.

Other ongoing projects of the developer include White City (Kandivali (E)), Raj Tattva (Thane (W)), Raj Infinia (Malad (W)), Raj Torres (Thane (W)), Raj Altezza (Mulund (W)).

Emails written to the spokespersons of Motilal Oswal and Rajesh Lifespaces seeking further details on the deal did not elicit any response till the time of filing this report.

The deal has been sealed from the second fund (India Realty Excellence Fund II) of the investment firm. The second fund has a target corpus of Rs 500 crore including a green-shoe option of Rs 200 crore. It is at the verge of closing the fundraising process and has deployed a significant amount of capital from it.

Recently, it invested Rs 85 crore ($14 million) in an ongoing residential project of Southern realtor Shriram Properties. The investment was sealed at special purpose vehicle (SPV) level in the form of equity for Greenfield which is located in Old Madras Road (Whitefield), Bangalore.

Previously, it has invested in two projects— one in Mumbai (MMR) with Ahuja Developers and another in Bangalore with Mahaveer Group.

Motilal Oswal Real Estate currently manages two funds with a cumulative corpus of Rs 700 crore. Its first fund is fully deployed and is churning out exits now. It has so far exited three of its seven investments from the maiden fund and has returned 77 per cent of the fund corpus to its investors.

While it is sealing back-to-back deals from its current fund, it has prepared the blueprint for its third fund. It aims to raise anything Rs 750-1000 crore from domestic limited partners.

As for the developer, its presence is limited to Mumbai real estate market and claims to have delivered over 8 million sq ft in the western and the central suburbs of Mumbai across 100 projects.

Present in the market for the last 50 years, it is led by its Raghavjibhai Patel (chairman), Harish R Patel (vice chairman) and Rajesh R Patel (managing director). It is present across residential, commercial and retail segments.

(Edited by Joby Puthuparampil Johnson)

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