hBits to raise Rs 500 crore by December 2021

NEW DELHI: Fractional real estate investment platform hBits has exited from its first asset giving its 21 investors an IRR of 17.54 per cent, Shiv Parekh, founder of hBits told ET.

The company has sold the 5,900 sq ft of prime office space in Mumbai at Rs 8 crore. The company is in talk to acquire another 35,000 sq ft in Mumbai with the investment of Rs 45 crore.

“We got the good offer and went to our investors and 100 per cent of them agreed on exiting. Exiting the property at a good return is the challenging task in fractional ownership and we have showed it to our investors,” Parekh said.

hBits, which invests money raised from individuals to commercial assets, has a pipeline to raise Rs 500 crore by December 2021 to invest in Grade A commercial real estate properties rented out to multinational companies.

The company is in the final stages of signing deal for few assets in Mumbai and Bengaluru.

“Overall we would like to own property worth Rs 4,000- 5,000 crore in the next 3-4 years before we start exiting from property. The commercial real estate is always in demand and pandemic has made it the right time to acquire,” Parekh said.

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.