hBits, a fractional ownership platform, has acquired 13,500 square feet of commercial real estate in Goregaon, Mumbai. Through this asset, hBits aims to create an investment opportunity worth INR 27.31 crore for retail investors, thus democratizing access to Grade A commercial real estate.
Located next to Bombay Exhibition Center and NESCO in the Western Suburbs of Mumbai, a major hub for IT / ITES, Media, Banks, and Financial Companies, the commercial asset will be leased to a prominent Indian-origin tech multinational firm, who will renew the agreement for the fourth term. The lease duration will be five years with a tenant lock-in period of 3-years. Further, the purchase price of the asset translates to a gross entry yield of 9 percent with an expected internal rate of return of 15.49 percent.
With this launch, the total Assets Under Management (AUM) of hBits’ is approximately INR 260 crores. The launch of the new asset follows two previous closures worth INR 89 crore. By March 2024, the fractional ownership platform aims to achieve an AUM of INR 500 crore.
Shiv Parekh, Founder & CEO, hBits, said “The launch of our latest asset comes at a strategic time, when Mumbai is solidifying its spot as the commerce capital of the country. Several global businesses are setting up offices in the city, which is driving a rapid surge in the demand and popularity of commercial real estate. Further with SEBI giving its nod to create a regulatory framework for the facilitation of small and medium real estate investment trusts (SM REITs), the space is now expected to witness increased participation from retail investors underscored by a greater capital influx from both domestic and offshore investors.”
“We are aiming to offer investors access to high-yield Grade A commercial real estate assets in technology hubs of India, a space that is largely dominated by institutional investors. Our platform enables retail customers to invest in a fraction of these institutional grade assets and benefit from the appreciation of their value. With this aim, we are amalgamating real estate, finance, and technology to create a platform where retail investors can invest money into a property with a foreseeable exit strategy.”
