Tech-based realty platforms to raise more funds for investment in commercial assets

As fractional real estate investing gains momentum during the Covid-19 pandemic, the tech-based real estate investment platforms promoting the concept are set to raise additional funds to invest in multiple grade A commercial assets across Mumbai, NCR and Bengaluru.

Hbits, which invests money raised from individuals to commercial assets, said that it is in the process to raise Rs 500 crore by December 2021 to invest in commercial real estate properties rented out to multinational companies.

Shiv Parekh, founder of hBits, said that it has so far raised Rs 20 crore and will raise Rs 100 crore by March 21.

“Overall, we would like to build a portfolio of Rs 4,000- 5,000 crore in the next 3-4 years before we start exiting from properties. Commercial real estate is always in demand and pandemic has made it the right time to acquire,” Parekh said.

Parekh said that two assets, both in Mumbai, are in the pipeline and they are in talk with another in NCR.

In the current scenario, fractional real estate investment is a new and safe way to invest in commercial real estate as they command higher rentals and attract large Indian and MNC tenants.

And many high earning professionals are ready to invest between Rs 25 lakh and Rs two crore in real estate.

Strata, a tech-enabled real estate investment platform said that it wants to take its assets under management (AUM) to Rs 1000 crore by the next financial year and target markets such as Mumbai, Bangalore, Pune and Hyderabad among others.

“Much similar to the demonetisation movement, this pandemic has pushed real estate toward a cultural change centred around a greater reliance on technology,” said Sudarshan Lodha, Co-Founder, Strata.

Strata, in the last one year has raised Rs 200 crore of investments in commercial properties such as office space, warehousing through the fractional route, of which 70% of the investments was raised during the pandemic lockdown.

“While investors are now consciously eyeing non-volatile, alternative investment options they are also growing increasingly aware of finer data checks — location, building specs, tenancy, returns, rental yields etc. Owing to this there is a sudden spurt in interest for many non-conventional assets which includes warehousing, data centers, Special Economic Zone (SEZ) among others,” Lodha added.

These platforms said that retail investors too looking to diversify or invest in a second home, are now eyeing alternate options in CRE offering higher returns – anywhere between 8-12% through a fractional investment.