hBits Second Commercial Grade-A Asset In CBD Bengaluru

hBits, a leading fractional ownership platform, has announced the launch of its second commercial Grade A asset in India’s Silicon Valley – Bengaluru, in just six months of marking its entry into the city. The new opportunity – London Listed MNC is in the commercial building Vaswani Centropolis in the Central Business District - the heart of the city on Langford Road, which is a thriving hub of global tech giants. The new asset is worth INR 28.8 crore and aims to offer a five-year average rental yield of 8.55%.

hBits recently applied for a Small and Medium REITs (SM REITs) license with the Securities and Exchange Board of India (SEBI) and the expansion in its portfolio is a testament to its commitment of creating multiple opportunities for investors. With this new asset, the company now has 15 properties in its portfolio, with an AUM of approximately ?400 crore.

The newly launched asset spans across a leasable area of 12,776 sq ft., having been leased for a period of six years. The rental inflow and purchase price of the asset offers an entry yield of 8.75% and an expected internal rate of return of 15.12%

hBits Founder & CEO, Shiv Parekh said “The tech hub of Bengaluru is driving the growth of India’s commercial real estate industry and will continue to dominate, with primary demand coming from the office market. Almost 30% of India’s premium commercial Grade A spaces are in Bengaluru, and we are excited to launch our second property in the city. As we set our eyes on listing our first SM REIT in the coming months, we remain focused on acquiring properties in premium locations across the country, thereby offering a host of opportunities to investors.” 

The centrally located structure has a robust tenant base and has an excellent road, metro, and rail connectivity. Vaswani Group is a diversified real estate group with over 36 years of experience in developing commercial and residential real estate across Bengaluru, Mumbai, Goa and Pune.

The new property marks hBits’ fourth asset launch in 2024, with previous properties in Bengaluru and Pune. The company marked its first closure in Bengaluru by acquiring a Grade A Commercial asset in the same building, Vaswani Centropolis worth INR 54.32 crore.