Motilal Oswal Real Estate (MORE), a private equity investment company, has announced that it is going to invest around Rs 120 crore in an infrastructure project in Gurgaon developed by ATS Realty.
This will be the fourth time both the companies are partnering for any project. With this deal, MORE’s commitment to ATS will sum around Rs 300 crore in the last three years out of which two of the investments were made through India Realty Excellence Fund II and III (IREF).
IREF II has exited from its investment on ATS Pristine in Noida. The fund received 25 per cent internal rate of return on exit. IREF III, which has a corpus of about Rs 1,000 crore, is on the verge of exiting real estate investment. The fund aims to six metro cities under the mezzanine and structured equity strategy, targeting early-stage investments.
The investment will also help develop a 1.7 million sq. ft. residential project ATS Grandstand in Gurgaon. The fund will be transferred through a structured mezzanine transaction.
“This investment is in line with our strategy of partnering with developers, who have established execution track record in each of the micro markets. ATS has proven strong sales and execution track record in a tough market like Delhi NCR,” says Sharad Mittal, Head, Real Estate Fund, Motilal Oswal.
Source: ET Realty