Bengaluru-based co-working giant, BHIVE, has announced the launch of its new coworking-focused Rs 400 crore CAT-2 alternative investment fund (AIF), highlighting its commitment to offering esteemed investors unrivalled investment opportunities in the ever-evolving-co-working sector.
Over the past year, BHIVE has solidified its position as a trusted name in the co-working space, successfully conducting transactions upwards of Rs 200 crore, a testament to its operational prowess and stakeholders' trust.
The company has also revealed its decision to wind up its current AIF fund, which was being managed by Sandeep Gupta. This transition marks Mr Gupta's decision to pursue new opportunities outside BHIVE. Despite his departure, BHIVE emphasises that there will be no disruption to its investment trajectory or impact on its current portfolio., as the current AIF had not yet been operationalized.
Sheshagiri Rao Paplikar, Founder & CEO of the BHIVE Group, commented on this development, "Change is inherent in the investment landscape. Our team, fortified by expertise and dedication, is committed to delivering optimum results and upholding our investors' trust in us."
The fund will acquire fully completed commercial real estate properties at prime locations with clear titles and occupancy certificates and a capex of a set. The new fund will offer a unique opportunity to High Net-worth Individuals (HNIs) and family-owned businesses looking to participate in the commercial real estate growth story with a minimum investment of Rs one crore.
“There has been exponential growth in the number of AIFs in India. Unlike a decade ago, when offshore investors were funding India’s AIFs, the expanding pool of domestic investors is helping them grow today. We see a tremendous opportunity in this segment and will go aggressive with our plans as we embark on the next growth phase of the organisation,” said Paplikar.
BHIVE Workspace has been aggressively expanding its footprint across Bangalore and eyeing new opportunities in other top commercial markets. It operates 25 flexible and managed office assets totalling 1.5 mn sq ft across Bangalore. India's office markets have demonstrated remarkable resilience, maintaining a consistent level of quarterly leasing activity throughout the first two quarters of 2023, led by Tech and Flex.
From an operational footprint of under 20 mn sq ft at the end of 2018, the flex segment, as of March 2023, has grown 3X in size across the top seven cities, driven by rising demand for managed space solutions from enterprises cutting across geographies and industries. The sector is poised to double its footprint over the next five years, crossing the 100 mn sq ft mark across the top seven cities by the end of 2027.
