India-focused fund manager Motilal Oswal Alternates has invested Rs 450 crore (about $56 million) in two projects of Shapoorji Pallonji Real Estate, per an announcement.
While one is a commercial project, the other is a residential township. The commercial one called SP Infocity is located near Manesar in Gurugram. It is partially completed, operational and already leased.
Meanwhile, the residential one, launched in 2021, is located in Bavdhan in Pune and is called SP Vanaha.
The funding has been routed through structured debt instruments. While a part of it will be used as working capital for the project, the remaining will be utilised to repay debt and achieve financial closure.
Among other deals in the realty sector, MO Alternates invested Rs 260 crore (around $31.4 million) in Urbanrise – Alliance Group to facilitate the development of its three upcoming housing projects in Bengaluru and Hyderabad.
MO Alternates, which recently made headlines for making the final close of its fourth private PE fund at a whopping Rs 4,500 crore, currently manages five real estate funds.
The PE firm’s cumulative assets under management for real estate currently stand at over Rs 6,000 crore. In real estate, MO Alternates has made more than 100 investments across over 135 projects and secured 50 complete exits.
“This marks our first investment with SP Real Estate – one of the leading developers in India. The investment is in line with our strategy to partner with established and credible developers for their mid-income housing projects,” Sharad Mittal, CEO of Real Estate Funds at MO Alternates, said in a statement.
Meanwhile, Venkatesh Gopalakrishnan, CEO of Shapoorji Pallonji Real Estate, said: “The additional funding will strengthen our growth story even more by adding significant value to our project pipeline.”
Shapoorji Pallonji Real Estate, a part of the 155-year-old Indian conglomerate Shapoorji Pallonji Group, develops realty projects in various categories. It builds both luxury apartments, and homes for mid-income people, besides also catering to the mass market in cities such as Mumbai, Pune, Bengaluru Gurugram, and Kolkata.