Motilal Oswal’s Alternate to invest in Shapoorji Pallonji

Motilal Oswal’s alternative investment arm MO Alternates has announced an investment of Rs 450 crore in realty player Shapoorji Pallonji for two projects.

The two projects are a commercial and a residential township. The commercial project, named SP Infocity and located near Manesar in Gurugram, is a partially completed, leased and operational project, while the residential township project in Bavdhan in Pune, called SP Vanaha was launched in 2021.

“The investment, which has been made through structured debt instruments will be utilised towards working capital for the project, repayment of debt and to achieve financial closure,” Motilal Oswal said in a statement on Monday.

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.

MOA currently manages five real estate funds and multiple standalone NCD investments. Its cumulative assets under management for real estate currently stand at over Rs 6,000 crore. In real estate, MOA has made over 100 investments across 135 projects and secured 50 complete exits.

CEO of Real Estate Funds, MO Alternates, Sharad Mittal, said the first ever investment with Shapoorji Pallonji Real Estate is in line with the strategy to partner with established developers for their mid income housing projects.

With a development potential of over 113 million square feet, Real Estate  has made inroads into most Indian cities, Mumbai, Pune, Bangalore, Gurugram, and Kolkata with a variety of developments from luxury apartments and residences to aspirational homes for mid-income homebuyers as well as one of the largest mass housing projects in India.

MO Alternates had committed Rs 260 crore in real estate developer Urbanrise – Alliance Group for the development of its three upcoming housing projects in Bengaluru and Hyderabad, last month.

Currently, company managing five real estate funds, has over Rs 6,000 crore worth assets under management (AUM) in the real estate sector.