Motilal Oswal Alternates commits ₹450 crore in Shapoorji Pallonji Real Estate

BENGALURU: Motilal Oswal (MO) Alternates Investment Advisors, the alternative investments arm of financial institution Motilal Oswal Group, on Monday said it has invested ₹450 crore with Shapoorji Pallonji Real Estate.

The capital commitment is for the Mumbai-based developer’s two real estate projects - a commercial and residential township. The commercial project near Manesar in Gurugram, called SP Infocity, is a partially completed, leased and operational project, while the residential township project in Bavdhan in Pune, called SP Vanaha, was launched in 2021.

This is MO Alternates’ first investment in Mumbai-based Shapoorji Pallonji Real Estate and will be used as working capital for the project, for repaying debt and achieving financial closure, the company said in a statement. It has been done through structured debt instruments.

“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. 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 ₹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 ₹6000 crore in assets under management in real estate. 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.