Startup hBits provides HNIs with partial ownership of commercial property in Mumbai valued at Rs 28 crore

 Startup hBits provides HNIs with partial ownership of commercial property in Mumbai valued at Rs 28 crore

Startup hBits provides HNIs with partial ownership of commercial property in Mumbai valued at Rs 28 crore

13,500 square feet of commercial real estate in Goregaon, Mumbai, have been discovered by the firm. It hopes to provide retail investors with an investment opportunity of Rs. 27.31 crore via this asset.

The company Hbits, which makes fractional real estate ownership easier, has found commercial properties in Mumbai valued at Rs 28 crore and is reaching out to wealthy people to make investments. 13,500 square feet of commercial real estate in Goregaon, Mumbai, have been discovered by the firm. It hopes to provide retail investors with an investment opportunity of Rs. 27.31 crore via this asset.

According to a statement from hBits, the Indian-origin IT giant will lease the commercial property and will extend the lease for a fourth term. There will be a three-year tenant lock-in term during the five-year lease.

"Additionally, the cost of the purchase of the asset translates into a gross entry yield that's 9 per cent with an expected internal percentage of return of 15.49 per cent," the business said. The introduction of this new asset has brought hBits' total assets under management (AUM) to over Rs 260 crore.

By March 2024, the platform wants to reach an AUM of Rs 500 crore. "The launch of our latest properties comes at a strategic time when Mumbai is firmly establishing its place as the commerce capital of the country," said Shiv Parekh, the chief executive officer of hBits. A lot of international companies are opening offices in the city, which is "Progressing rapidly." There is a rise in the popularity and demand for commercial real estate.

He said that it is now anticipated that ordinary investors would participate in fractional ownership of real estate to a greater extent, following SEBI's approval of the establishment of a legal framework to support small and medium real estate investment trusts (SM REITs). For as little as Rs 25 lakh, investors may purchase high-yield, Grade-A buildings including offices, warehouses, and commercial spaces with hBits.

With its headquarters located in Mumbai and founded by Shiv Parekh in 2019, hBits Group owns nine properties that together have an AUM of Rs 260 crore.