Grip, an alternative investment platform, has partnered with Strata, a commercial real estate (CRE) platform, to promote commercial real estate as its new product offering. The move is aimed at enabling individual investors to invest in pre-leased, grade-A commercial properties at a fractionalised investment amount of just INR 1,00,000 and helping them diversify their investment portfolio.
For every opportunity, Strata will identify the commercial properties, including offices, industrial warehouses, retail, and data centres, undertake the due diligence, identify marquee tenants, and complete the fit-outs in certain situations. Moreover, the tenants are established MNCs having a strong credit profile and providing long lock-in/lease tenures and contracted rental escalations, according to Grip.
Sudarshan Lodha, co-founder and CEO, Strata, said, “Millennials are constantly on the lookout for new investment avenues, and given the increased uncertainties in the COVID-impacted world, the need for diversification into alternative investments is more than ever. By partnering with Grip, we can make commercial property investments accessible to more millennial investors, at a fraction of the high investment amounts traditionally required to invest in commercial properties.”
Nikhil Aggarwal, founder and CEO, Grip, said, “Stock market volatility has unnerved a significant majority of the individual investors. We have witnessed an uptick in interest and funds rationed towards non-market linked investment opportunities, aka alternative assets. With this offering, we hope to democratise commercial real estate for all and ensure accessibility at a low minimum investment amount.”
Through the CRE product offered by Grip in partnership with Strata, investors can earn up to 11% pre-tax yield; with the inherent land value likely to appreciate over time and asset ownership, the product offers attractive risk-adjusted returns. Grip has enabled the CRE investments through a partnership with a SEBI-registered alternative investment fund (AIF). The AIF ensures that funds to be invested in each opportunity are raised through a separate scheme. Accordingly, investors can expect that the funds invested will only be used towards making investments in the opportunity they choose to participate in.
