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IREF II Funds Overview

India Realty Excellence Fund II (IREF II)

  • Year of Launch : 2014
  • Corpus : INR 500 Crore
  • Focus : Residential projects in top cities of India
  • Number of Investments : 12
  • Investments Exited : 2 full exits out of 12 investments

India Realty Excellence Fund II (IREF II) was the second domestic scheme launched by MORE. The fund, with mezzanine structure in mind, shall focus on real estate development, predominantly investing in Tier 1 cities with a residential focus. The fund closed in March 2015.

The fund is fully raised, closed, deployed and is currently in the process of exiting its investments. The fund’s exits are based on self-liquidation or through repayment of fixed IRRs by the developer to the fund.

With the right execution of strategy and processes, IREF II has secured two full exits, Mahaveer Developers in Bangalore and Casa Grande in Chennai, at healthy IRRs. The fund exited its investment from Casa Grande from project cashflows. 

The Fund has already returned 30% of the capital to its investors within the commitment period itself.

Investment Strategy

  • Focus on residential projects at established locations
  • Partnering with established developers across top Indian cities for their mid-income residential projects
  • 1st Fund to undertake mezzanine investments when others’ were focusing on fixed coupon post approval projects
  • Able to identify the shift in goal post from “Approval Risk” to “Sales Risk”

Investment Snapshot as on 31st December 2016

Sr. No. Investment Date Project Location Committed Amount (in Rs. Cr.)Current Status
1 January 2014 Ahuja Developers
Mumbai 86 Invested
2 March 2014 Mahaveer Developers Bangalore 40 Exited
3 December 2014 Shriram Properties Bangalore 67 Invested
4 March 2015 Casa Grande Chennai 58 Exited
5 April 2015 Mahaveer Developers Bangalore 22 Invested
6 April 2015 Rajesh Lifespaces
Mumbai 41 Invested
7 May 2015 ATS Housing Noida 72 Invested
8 December 2015 Skylark Mansions Bangalore 55 Invested
9 March 2016 Kolte Patil Pune 18 Invested
10 August 2016 Casa Grande Chennai 80 Invested
11 December 2016 Casa Grande Chennai 25 Invested
12 January 2017 Casa Grande Chennai 32 Invested