Opportunity.

Expertise.
January 2019

Value.

The above rating reflects

‘highest’ standards in fund
management capability and
investment processes.
Opportunistic time for an Investment
Slow sales along with structural Consolidation along with Opportunistic time
reforms leading to consolidation tightened liquidity leading for funds
to opportunity
Tightened liquidity
in market
Limited financing
options for
Tepid Sales developers
Increased deal flow
for funds

NBFC Crisis Demonetization

Better Structured Deals with
Consolidation Good Quality Developers at
Higher Yield

GST RERA

About Motilal Oswal Real Estate

Motilal Oswal Real Estate has been focusing on real estate investing since 2009

L 2,800 Cr+* 46 24 15
AUM Investments Made Investments Exited Member Team

AUM Growth* (` Cr) Expertise Awards & Recognition

2811
MORE manages four real estate Awarded “Real
funds and PMS/ Debt Book Estate Fund of the
Expertise across all investment Year – Domestic”
1471
structures – equity, mezzanine at the CNBC
and debt Awaaz Real Estate
Awards 2016-17
Expertise across asset classes
433
– residential, retail, plotted &
210 Awarded “Best Real
93 commercial
Estate Product”
at India Wealth
Dec-10 Dec-12 Dec-14 Dec-16 Jan-19
Awards 2018

Key Developer
Partners

*This is the cumulative AUM including all 4 funds (inclusive of re-investments) and PMS/ Debt Book
Superior Exit Track Record based on a well laid out Process
IREF II (J 489 Cr Fund)
Focus on
structured
transactions 14 8 21.2% 107%*
Investments Exits IRR on Exits Money Returned

Partnering
59%* 48%*
with leading Capital Income
developers
IREF III (J 1031 Cr Fund)

Focus on 20 3 22.1% 17%^

affordable/
Investments Exits IRR on Exits Money Returned
mid-income
housing 0%^ 17%^
Capital Income

Focus on top 6
Debt Book (~J 311 Cr)
cities in India
6 6 21%+ 127%#
Investments Exits IRR on Exits Money Received
Active asset 100%# 27%#
management
Capital Income

* on Fund Size   ^ on Investible Funds # on Total Debt Book

India Realty Excellence Fund IV – So far

Upto L 1200 Cr L 700 Cr L 563 Cr 4

Target Fund Size Commitments Amount Raised as Investments Made with
Received till date^ of 1st Close Marquee Developers

L 252 Cr 20%+ L 100 Cr Above rating reflects

‘highest’ standards in fund
Amount Committed Target IRR Across Committed by Sponsor management capability
Across 4 Investments 4 Investments and investment processes

Incoming investors in the 2nd Close would benefit from 25%* of Fund already being committed and
certainty of returns from 4 well structured transactions with high quality developers

* Assuming Fund Size of ` 1000 Cr ^ As of 5th February 2019

Yield Expansion in recent times
Timeline of some Investments with targeted IRRs

25%

24% Yield Expansion in the

last 6 months
IREF IV – 23%
23%
Pipeline Deals

22% IREF III – 21.5%

IREF II – 21.2% IREF III – 21.2%
IREF III – 21%
21% IREF IV – 22%
IREF II – 21.5%
20%
IREF III – 20.5%
IREF III – 20.6%
IREF III – 20.5%
19% IREF III – 19.5%

18%

IREF III – 18.5%

17% IREF IV – 18%

16%
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19

Post the liquidity crisis, the fund has locked good structured deals at elevated yields with established
developers and has a healthy pipeline of deals

Sponsor – MOFSL : An investment powerhouse

30+ L 59,000 Cr+^ ~8%*

Years of Presence AUM# Sponsor Commitment

L 9,500 Cr+^ 5,000+ Fortune 500 Company

Market Cap Employees

* AMC & Fund Management Business   ^ As of 31 Dec 2018 # AUM consists of Wealth, AMC & Fund Management AUM

MOFSL: Motilal Oswal Financial Services Limited

IREF IV – Key terms
Target Fund Size Upto ` 1200 Cr

Hurdle Rate 10% IRR (pre-tax)

Target Returns 22-24% IRR (Gross)

Minimum Commitment ` 1 Cr
Sponsor Commitment 10% of aggregate capital commitments received by the Fund, subject to a minimum capital
commitment of ` 50 Cr and maximum capital commitment of ` 100 Cr

Tenure of the Fund 5 years from final closing date (extendable by 1 + 1 years)

Commitment Period 2 years from final closing date (extendable by 1 year)

Initial Contribution 10% of commitment amount (at the discretion of Investment Manager)

Fee Structure
Capital Commitment One time Setup Fee Management Fee* Performance Fee (with catch up)

` 1 Cr to 10 Cr 2.00% p.a 15.00% p.a

> ` 10 Cr to 25 Cr 2.00% 1.75% p.a 12.50% p.a

> ` 25 Cr 1.50% p.a 10.00% p.a

Please refer to private placement memorandum and contribution agreement for further details

* To be charged upfront on net capital commitment for first 12 months from initial closing; thereafter payable in advance on a
quarterly basis on invested capital

Note: All above fees are excluding any taxes for Class A unit holders

IREF IV – Salient Features

Strong Investment Traction 25% of Fund committed
The Fund achieved 1st Close at ` 563 Cr; has 25%* of the Fund has already been
received commitments of ` 700 Cr till date^ committed across 4 investments

Returns Locked in High Sponsor Commitment

4 well structured deals already done with Sponsor will commit 10% of the aggregate
marquee developers at an average target capital commitments subject to maximum
IRR of 20%+ of ` 100 Cr

CRISIL Rated Fund Majority External Members on IC

CRISIL Rated Fund Management Experts from various fields of real estate,
Capability Level – 1 which reflects ‘highest’ banking, corporate finance
standards in Fund Management Capability
& Investment Processes

Project Strategy Alignment of Interest

Primarily Invest in top 6 cities in mid- Carry structure for the team members to
income/ affordable housing projects ensure alignment of interest
(selectively commercial) predominantly
through a mezzanine structure
* Assuming Fund size of ` 1000 Cr ^ As of 5th February 2019
Disclaimer
This presentation has been prepared exclusively for information purposes only and should not be regarded as an official opinion or a
recommendation of any kind. The information and statistical data contained herein is proprietary, or extracted from publicly available
information or other sources which Motilal Oswal Real Estate Investment Advisors II Private Limited (“Investment Manager”) believes to
be reliable but in no way warrants to its accuracy or completeness. Opinions, estimates and projections in this presentation constitute the
current judgment of the Investment Manager and are subject to change without notice. Any projections, forecasts and estimates contained
in this presentation are necessarily speculative in nature and are based upon certain assumptions. It can be expected that some or all of such
assumptions will not materialize or will vary significantly from actual results.
This presentation may contain forward looking statements. Due to various risks and uncertainties, actual events or results may differ materially
from those contemplated in such forward-looking statements. Further, the readers should bear in mind that past performance is not necessarily
indicative of future results, and there can be no assurance of future results. Except where otherwise indicated, the information provided herein
is based on matters that exist as of the date of preparation and not as of any future date. The Investment Manager has no obligation to update,
modify or amend this presentation or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection,
forecast or estimate set forth herein, changes or subsequently becomes inaccurate. No assurance is given guarantee for any accuracy of any
of the facts/ interpretations in this presentation. The Investment Manager, or its employees/directors shall not be liable to any person including
the beneficiary for any claim or demand for damages or otherwise, in relation to this opinion or its contents and including, without limitation,
any express or implied representation or warranty with respect to such information.
This presentation is not an offer to sell units/securities of any investment fund or a solicitation of offers to buy any such securities. Securities/
units of India Realty Excellence Fund IV (“the Fund”) are offered to selected investors only by means of a complete private placement
memorandum and related subscription materials, which contain significant additional information about the terms of an investment in the Fund
(such documents, the “Fund Documents”). Any decision to invest must be based solely upon the information set forth in the Fund Documents,
regardless of any information investors may have been otherwise furnished, including this presentation.
An investment in any strategy, including the strategy described herein, involves a high degree of risk. Returns are dependent on prevalent
market factors, liquidity and credit conditions. The aimed returns mentioned anywhere in this document are estimated on a pre-tax basis
unless specified otherwise, purely indicative and are not promised or guaranteed in any manner. Instrument returns depicted are in the
current context and may be significantly different in the future. Units of the Fund are not registered with any regulatory authority, are offered
pursuant to exemptions from such registration, and are subject to significant restrictions. Prospective investors are urged to consult their own
tax advisers in respect of any financial decision taken by them. The contents of this presentation should not be treated as advice relating to
investment, legal or taxation matters.
The information contained herein is provided to the prospective investors on a confidential basis and should not be reproduced or disclosed to
third parties or duplicated, in whole or in part, or used for any purpose, without the express written consent of the Investment Manager.

Note: All numbers in this presentation updated till 14th January 2019 unless mentioned otherwise

Contact us
Motilal Oswal Real Estate Investment
Advisors II Pvt. Ltd.

12th Floor, Motilal Oswal Tower, Junction of

Gokhale Road and Sayani Road, Prabhadevi,
Mumbai - 400 025

Chandrakant Soni Naveen Gupta

Head – Fund Raising & Investor Relations VP – Fund Administration
DID: (+91) 22 3980 4232 DID: (+91) 22 3982 5551

Mobile: (+91) 983 395 3543 Mobile: (+91) 976 918 4006

E-mail: chandrakant.soni@motilaloswal.com E-mail: naveen.gupta@motilaloswal.com

motilaloswalre.com