Startup hBits, specialising in fractional real estate ownership, has targeted a Rs 28 crore commercial property in Mumbai, seeking investments from high-net-worth individuals (HNIs). The identified commercial real estate spans 13,500 square foot (sqft) in Goregaon, Mumbai, presenting an investment opportunity of Rs 27.31 crore for retail investors.
hBits plans to lease the commercial asset to an Indian-origin tech multinational firm, with a lease duration of five years and a tenant lock-in period of three years, anticipating a renewal for the fourth term, according to hBits, as cited in media reports. The asset’s purchase price corresponds to a gross entry yield of 9%, with an expected internal rate of return of 15.49%, as per hBits. The recent property launch has elevated hBits’ total assets under management (AUM) to approximately Rs 260 crore.
The platform’s target is to achieve an AUM of Rs 500 crore by March 2024. hBits offers investors the opportunity to participate in high-yield Grade-A assets, including offices, commercial spaces and warehouses, with a minimum investment size as low as Rs 25 lakh. Established in 2019 by Shiv Parekh, hBits Group is headquartered in Mumbai and currently manages an AUM of Rs 260 crore across its nine existing properties.
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