Motilal Oswal Alternates invests ₹450 crore in Shapoorji Pallonji Real Estate
Motilal Oswal Invests ₹450 Crore in Shapoorji Pallonji Real Estate
Motilal Oswal Alternates (MOA), the alternative investment arm of the Motilal Oswal Group, has made its first investment of Rs 450 crore in Shapoorji Pallonji Real Estate, against two of developer group's projects.
Investment Structure and Use
One project is a partially completed, leased and operational commercial project in Manesar. The other is a residential township launched in 2021. The investment, which has been made through structured debt instruments, will be used for working capital, repayment of debt and achievement of financial closure, said the company.
The structured debt model allows MOA to support growth across different asset classes while maintaining risk-adjusted returns, a strategy consistent with the fund's focus on mid-income housing and operational commercial assets.
Motilal Oswal Alternates' Real Estate Position
Motilal Oswal Alternates currently manages five real estate funds and multiple standalone NCD investments. Its cumulative assets under management for real estate currently stands at more than Rs 6,000 crore. In real estate, more than 100 investments have been made across more than 135 projects and secured 50 complete exits.
The investment is in line with Motilal Oswal's strategy to partner with established and credible developers for their mid-income housing projects.
Shapoorji Pallonji's Developer Profile
Shapoorji Pallonji is a globally diversified organisation delivering challenging projects in 40+ countries for over 160 years. The company has developed over 13 million sq. ft. of residential and 6 million sq. ft. of commercial properties to date.
SP Infocity Manesar, the commercial project underlying this investment, is a world-class commercial development spanning 1.1 million sq. ft. with 3-level basement parking. The SP Infocity projects are notified IT/ITES SEZs that allow clients to avail of income tax exemption, service tax exemption and a suite of other duty benefits.
The residential component is part of Shapoorji Pallonji's flagship 1,000-acre integrated township, VANAHA, near Bavdhan, Pune. To date, Shapoorji Pallonji Real Estate (SPRE) has sold over 2,000 apartments worth Rs. 1,800 crore across the mid-segment within this large township.
Capital Raise and Developer Context
Venkatesh Gopalakrishnan, CEO of Shapoorji Pallonji Real Estate, said the additional funding will strengthen the company's growth story even more by adding significant value to its project pipeline.
This investment reflects the broader market acceptance of Shapoorji Pallonji's mixed-tenure portfolio spanning commercial and residential assets. Shapoorji Pallonji Real Estate is a well-regarded, reputed player in the Indian real estate sector owing to cutting-edge design innovation, construction quality and architectural excellence.