hBits, a leading tech-enabled real estate company offering fractional ownership to investors, has launched a commercial property worth Rs 42 crore. It said the Grade A+ asset boasts a high-entry yield of 10 per cent gross per annum and an expected internal rate of return (IRR) of 16.40 per cent. Investments in the asset fractional ownership start from Rs 25 lakh.
The company has acquired 27,492 square feet in the Boomerang Building. The property is located in Powai, which is the fastest-growing commercial real estate micro market in Mumbai, according to a company statement.
hBits already has a total asset under management (AUM) of Rs 150 crore in its kitty, registering over 50,000 customers on its platform. The new asset launch is an option for more investors who are looking at fractional ownership as an investment option.
The building’s anchor tenant is the large US multinational corporation, Sitel. With 11 years already under their belt, Sitel has four more years remaining in their lock-in period, providing investors with steady and secure returns in the foreseeable future, according to the statement.
Shiv Parekh, founder of hBits, said, “The fractional ownership market is seeing a steady rise in demand from investors, particularly due to the volatility in equity markets. We are seeing continued interest from senior corporate executives and seasoned investors alike. Our unique tech platform provides complete transparency, reduces risk and builds credibility among investors. We invest only in Grade A assets with large corporates and MNCs as marquee tenants to ensure better returns for our investors.”
Samir Bhandari, chief financial officer of hBits, said, “Fractional ownership is a unique financial instrument that offers investors higher returns than traditional investment options. While the concept is popular across the globe, it is relatively new in India. The popularity of fractional ownership as an investment avenue is growing rapidly and we expect commercial real estate to provide high returns in the years to come.”
He said there was a tremendous growth of around 70-80 per cent in fractional ownership in 2022. This growth has helped build credibility amongst new-age, as well as traditional investors. The digital transformation of ownership processes has further helped investors with quick and seamless end-to-end transactions. Overall, we’re optimistic about the future of fractional ownership and its potential to deliver excellent returns to investors.
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