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 - done via structured debt instruments - will be utilized by Shapoorji Pallonji as working capital for the project, debt repayment and achieving financial closure, MO Alternates said in a statement.
“This marks our first investment with SP Real Estate. The investment is in-line with our strategy to partner with established and credible developers for their mid income housing projects. We hope that this investment forms the foundation of a long-standing partnership with Shapoorji Pallonji Real Estate,” said Sharad Mittal, chief executive of Real Estate Funds, MO Alternates.
Last month, MO Alternates had committed Rs 260 crore (around $31.4 million) in real estate developer Urbanrise - Alliance Group for the development of its three upcoming housing projects in Bengaluru and Hyderabad.
MO Alternates, currently managing five real estate funds, has over Rs 6,000 crore worth assets under management (AUM) in the real estate sector.
In the past, it has partnered with Casagrand Builders, M3M/ Smartworld Group, Kolte-Patil Developers, Shriram Properties, Phoenix Group, Ashwin Sheth Group, Marathon Group among others.
“We appreciate the investment made by Motilal Oswal Alternates in our projects. This exemplifies the company’s strong trust in our brand. The additional funding will strengthen our growth story even more by adding significant value to our project pipeline,” said Venkatesh Gopalakrishnan, chief executive, Shapoorji Pallonji Real Estate.
Shapoorji Pallonji Real Estate is a part of the 155-year-old Shapoorji Pallonji Group, a multi-business Indian conglomerate. It develops projects ranging from luxury apartments and homes to aspirational homes for mid-income homebuyers as well as mass housing residencies in cities including Mumbai, Pune, Bengaluru Gurugram, and Kolkata, with a development potential of over 113 million square feet.
