UAE residents – both nationals and expats – will soon be able to take active part in the real estate boom playing out in the domestic market, and also in the Indian market, investing very little amount, with hBits, which is spearheading fractional investments in high yielding real estate assets in India, set to expand its operations to the UAE.
The company will enable retail investors in the UAE to be part-owners of high-end, multi-million dollar residential and commercial assets in Dubai for as little investment as $30,000 through its AIF (alternative investment fund).
As for investments in commercial real estate assets in India – mostly Grade A office assets – UAE retail investors can invest in hBits’ soon-to-be floated AIF in India’s international financial services centre – GIFT city.
Following a recent decision by India’s market regulator SEBI (Securities and Exchange Board of India), small and medium real estate investment trusts (SMREITs), which enable fractional ownership in real estate assets, are expected to be soon listed on Indian stock exchanges. The retail investors can exit anytime, just like how they sell their shares or units of mutual funds. The entire fund will be closed when the asset is sold.
hBits to open office, explore partnerships in Dubai soon to expand its operations into the UAE. The company is also exploring partnership opportunities to fast track its growth plans in the UAE, and is already in talks with “a couple of developers and distributors” for it.
The company is now looking to expand its investor base to include foreign investors in a big way, and its proposed plans for floating AIFs in India’s international financial services centre – GIFT city – and in the UAE are aimed at that.
As for its investment plans in Dubai and the UAE, the hBits will float a Special Purpose Vehicle (SPV), and all investments will be routed through an escrow account. This makes the transaction very transparent. The investment will range from $6 million to $10 million for every asset that it purchases, and will invite investors with investment amounts starting $30000 to own the property fractionally with other investors.
