Sharad Mittal, CEO of Real Estate Funds of the Motilal Oswal Group’s alternative investments arm Motilal Oswal Alternates, has resigned from the company after raising five funds worth over Rs 7,500 crore from global and domestic investors during the 10-year stint.
Mittal, with over 20 years of experience in the real estate industry across ICICI Prudential AMC, ICICI Bank, ASK Property Investment Advisors and First Rand Bank, is planning to start his own real estate fund.
He has been instrumental in building MO Alternates’ real estate investment platform and following this development, the firm has elevated Saurabh Rathi and Anand Lakhotia as the co-heads for the real estate platform.
“Our relationship with Sharad will remain strong. Over the last decade, we have built a robust real estate investment platform with strong processes and a competent team. Saurabh and Anand have been with us during this period and we are bullish on the realty market’s performance over the next 10 years,” said Vishal Tulsyan, Founder & CEO, MO Alternates.
MO Alternates manages five real estate funds and four growth capital funds, amounting to a cumulative asset under management of over $2 billion or over Rs 16,400 crore. Of this, assets worth over Rs 7,300 crore are under the real estate platform
The fund is among one of the largest domestic entities in this segment. It has made more than 143 investments across 8 cities in India through the platform. With active asset management of the portfolio, the fund has established a record of over 74 profitable exits from investments that have generated an average return of 20.4% internal rate of return (IRR).“Mittal who was spearheading the real estate platform has decided to venture onto his own entrepreneurial path,” MO Alternate Investment Advisors said while sharing the update with its investors.The upcycle in the housing property market over the last three years has prompted a churn at the real estate funds as some of the known senior managers have ventured out on their own in the last few quarters.
Mohit Malhotra, former managing director and chief executive officer of Godrej Properties, recently started his own fund NeoLiv that has secured the permission from the Securities & Exchange Board of India (SEBI) for a category II Alternate Investment Fund (AIF) with a plan to raise $150 million.
MUMBAI: Fractional real estate ownership platform hBits has received regulatory approval from the Securities and Exchange Board of India (SEBI) to raise over Rs 500 crore through a category II Alternative Investment Fund (AIF) for commercial real estate investments across India’s key markets.
The tech-enabled platform is also setting up a feeder fund–the Global Investors Feeder Trust (GIFT)–based out of GIFT City to cater to foreign investors.
This will be the first such fund raised from investors including global institutions by any fractional ownership platform in India. It is targeting the Internal Rate of Return (IRR) in the range of 18% to 20% for investors.
“We are committed to democratizing the commercial real estate investments. We have obtained regulatory approval for the new fund that will add to our preparedness to seize the boundless potential of the investments in this segment. This marks the initial step of our journey as we strive to raise multiple funds and transform the investment landscape,” Shiv Parekh, founder, hBits, told ET.
The AIF aims to invest in grade A properties including offices, data centers and warehousing projects, retail spaces and hospitals. These assets will be across under-construction, pre-leased, and completed and operational projects across the country’s top six cities.
“With the combination of SEBI-approved CAT II AIF and the proposed GIFT City-based feeder vehicle, we will be able to offer investment opportunities with superior risk adjusted returns to investors,” said Mayank Jain, CIO, hBits.
Jain believes hBits’ investment approach, deep reach amongst intermediaries, and comprehensive market insights will help in identifying high-yield opportunities and implement strategies that deliver exceptional returns to investors.hBIts’ proposed feeder fund GIFT will facilitate international investors’ participation in its AIF while affording them valuable tax benefits and cost-effectiveness. This tax-friendly and cost-effective feeder fund structure ensures compliance with relevant regulations and provides robust regulatory oversight to safeguard the interests of foreign investors.
The fund aims to attract international investment in the Indian real estate market, providing foreign investors with tax-effective structures to capitalize on the country’s growth potential.
The company will be tapping investors such as family offices, Ultra High Net Worth Individuals (UHNIs), domestic institutional investors, and international funds based on the response to its initial activity in the markets.
hBits recently raised Rs 42 crores for a pre-leased commercial asset spread over 27,492 sq ft in Boomerang Building, commercial real estate micro market Powai in Mumbai. The grade A property has an entry yield of 10% gross per annum, with an expected IRR of 16.40%. The office asset is leased to US multinational corporation, Sitel.
The platform has asset under management (AUM) of over Rs 200 crores from their 9 existing properties with more than 60,000 registered users having successfully exited a commercial property at an industry best IRR of 17.54%.
The company has already received investment in its assets from the senior executives and top management of top 50 Indian blue-chip companies.
At present, hBits has nine assets in Mumbai including Der Deutsche Parkz 31, 32, 41 and 42, Ackruti Centre Point 1 and 2, Times Square in Andheri suburb of Mumbai. These assets have a lease of 5-7 years with all its key tenants such as ICICI Bank, IIFL ATPI, Ingenico Group and Viaante Business Solutions.
Fractional ownership allows investors to get exposure to income-producing real estate assets without a usual huge monetary undertaking. It refers to a set-up wherein a group of investors pool in funds to purchase a property and share passive ownership of a high-value asset through their investments. Ends
Equity benchmarks recovered most of their intra-day losses to close modestly lower on Tuesday amid buying in index majors Reliance Industries and Tata Consultancy Services despite lacklustre global cues.
After tumbling over 700 points intra-day, the 30-share BSE Sensex clawed back lost ground on last minute buying in index heavyweights. It finally ended 103.90 points or 0.17 per cent lower at 61,702.29.
On similar lines, the broader NSE Nifty dipped 35.15 points or 0.19 per cent to end at 18,385.30.
Tata Motors led the Sensex losers’ list, dropping 1.75 per cent, followed by Hindustan Unilever, Bharti Airtel, M&M, NTPC, Maruti Suzuki, L&T and HDFC Bank.
In contrast, Tata Consultancy Services, Reliance Industries, UltraTech Cement, IndusInd Bank, Axis Bank and ICICI Bank were among the prominent winners, climbing up to 1.29 per cent.
The market breadth was negative, with 21 of the 30 components closing in the red.
”The Bank of Japan shocked global markets in a totally unexpected move by raising the upper band limit for the 10-yr yield to 50 bps, which is seen as a step towards a hawkish policy shift. This has aggravated the sell-off in the global market, which was already risk-averse due to mounting recessionary fears following the Fed’s comment.
”In this backdrop, the US GDP numbers expected on Thursday will provide a picture of the strength of the US economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said markets struggled through the session and ended in the red due to weak global cues, but managed to recoup most of the early losses.
”The choppy trend can be attributed to lack of fresh positive triggers. Also, investors are awaiting the release of the minutes of the RBI’s recently concluded monetary policy on Wednesday, which could give some clarity on the central bank’s likely course of action in the near term,” he added.
In the broader market, the BSE midcap gauge declined 0.27 per cent and the smallcap index dipped 0.02 per cent.
Among sectoral indices, telecommunication went lower by 1.32 per cent, realty (1.04 per cent), auto (0.76 per cent), FMCG (0.57 per cent) and metal (0.51 per cent).
Energy, IT and oil & gas ended in the green.
Elsewhere in Asia, equity markets in Seoul, Tokyo, Shanghai and Hong Kong closed lower after the Bank of Japan’s policy move.
Equity exchanges in Europe were trading in the negative territory in mid-session deals. The US markets had ended lower on Monday.
International oil benchmark Brent crude inched up 0.65 per cent to USD 80.32 per barrel.
The rupee depreciated 13 paise to settle at 82.75 (provisional) against the US dollar on Tuesday as investors turned cautious in view of a negative trend in domestic equities and rising crude prices.
Foreign institutional investors (FIIs) offloaded shares worth a net Rs 538.10 crore on Monday, according to exchange data.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ICICI Bank, Tata Consultancy Services to launch digital lending platform iLens, know details
ICICI Bank has announced to launch of a new digital lending platform called “iLens” which is powered by Tata Consultancy Services(TCS).
According to a statement from the IT giant, the platform would digitise the entire lending process –from application to disbursement– to offer everyone, including new-to-bank customers, unparalleled convenience with faster turnaround of loan applications, greater transparency of loan status and smooth experience.
iLens has already helped customers, including new-to-bank individuals, to avail of housing loans in a completely digital process with hassle-free onboarding via paperless login, uploading documents, receiving instant sanctions, appraising properties and disbursement of loans, the IT company said in a statement shared with stock exchanges.
This app enables quicker credit assessment, property appraisals, and legal and technical documentation, the IT firm said, adding that based on these, many of the new-to-bank customers will also be given pre-approved offers — yet another industry-first initiative.
iLens offers a unified digital interface for all stakeholders–customers, employees, sourcing channels, lawyers, technical officers, and underwriters, according to the statement. It added the latest platform enabling seamless onboarding of customers with minimal data entry, and video KYC, among others.
The IT firm said it has an inbuilt customer interface that helps borrowers track the status of their loan application in real time. V V Balaji, Chief Technology Officer, ICICI Bank, said, “Over the years, we have focused on enhancing customer experience through digital enablement and streamlining of processes. Our digital platforms, usage of analytics and behavioural sciences underpin our banking solutions.”
“Currently, we have aligned mortgage loans to the iLens platform making us the first to digitise the entire mortgage lending process. This brings in a significant shift in the industry, as digital journeys for a home loan are available only till receiving the sanction letter. We believe that this platform will offer an unparalleled experience to our customers to fulfil their aspirations of owning a home or a car, acquiring higher education and enabling business growth,” the CTO said.
TCS in the statement said its open API architecture enables the back-office processing to be seamlessly integrated with third parties such as legal counsel and property evaluators to accelerate the workflows and eliminate paperwork.
iLens is also equipped with inbuilt e-sign, e-NACH and e-stamp features enabling swift disbursal of the loan with minimal paperwork, the IT firm said, adding that the platform`s mobile-first architecture enables customers to operate it on any device – mobiles, tablets, or desktops.
Ujjwal Mathur, Country Head, TCS India, said, “This is a landmark moment in our partnership with ICICI Bank as we help them digitally transform the retail lending process and experience using the TCS lending platform. This further reinforces the bank`s reputation for using digital technologies to provide superior customer experiences and drive competitive differentiation.”