hBits has launched its second Grade A commercial asset in Vaswani Centropolis, Bengaluru, worth INR 28.8 crore. The property, measuring 12,776 square feet and leased for six years, has an entrance yield of 8.75% and an expected internal rate of return (IRR) of 15.12%. This is the company's fourth asset launch this year, bringing its total portfolio to 15 properties with an AUM of INR 400 crore. hBits recently applied for a small and medium REIT licence from SEBI, with the goal of providing more investment alternatives to smaller investors.
hBits, a growing player in the Indian real estate sector, has launched its second commercial Grade A asset in Bengaluru, valued at INR 28.8 crore. The asset is located in Vaswani Centropolis, one of the city's prominent business hubs. Spanning a leasable area of 12,776 square feet, the property has been leased for six years, offering investors promising returns. According to hBits, the rental inflow and the acquisition cost of the asset present an initial yield of 8.75%. Additionally, the expected internal rate of return (IRR) for the asset is projected at 15.12%, making it an attractive investment opportunity for those seeking steady income from real estate.
The company intends to provide investors with an average rental yield of 8.55% over five years, indicating a consistent income stream from the leased property. This new initiative is the latest addition to hBits' growing portfolio, which currently includes 15 commercial assets with an asset under management (AUM) of around INR 400 crore. The company's strategy centres on generating consistent profits while acquiring high-quality commercial real estate in major markets.
This latest launch in Vaswani Centropolis comes after hBits previously acquired a Grade A commercial facility in the same building for INR 54.32 crore. The success of the prior acquisition has increased the company's footprint in Bengaluru's commercial real estate sector, which is experiencing consistent demand for high-quality office space.
hBits' continuing expansion in the commercial real estate sector demonstrates its belief in India's expanding office space market, particularly in key urban centres such as Bengaluru and Pune. The company's portfolio has rapidly expanded, with this latest asset launch being the fourth major property launch this year. With assets in Bengaluru and Pune, hBits has strategically positioned itself in two of India's most desirable commercial real estate markets.
The company has also been working to expand its investment options for small and medium investors. Recently, hBits applied for a small and medium Real Estate Investment Trust (SM REIT) licence with the Securities and Exchange Board of India (SEBI). If granted, this licence will enable hBits to offer retail investors more accessible entry points into the commercial real estate sector, which is typically dominated by institutional investors. By opening the door to smaller investors, hBits aims to democratise access to high-quality real estate investments, offering attractive returns with lower entry barriers.
With this new asset in Vaswani Centropolis, hBits continues to strengthen its foothold in Bengaluru's commercial property market, where demand for office spaces remains high. The city has witnessed a robust commercial real estate market due to the growth of the IT sector and the influx of multinational companies setting up offices there. The six-year lease on the new property ensures a stable source of rental income for the company, while the promising IRR of 15.12% suggests potential capital appreciation. Investors seeking reliable and steady returns in commercial real estate are likely to find this opportunity appealing, particularly given the secure leasing terms.
hBits' launch of a new commercial Grade A asset in Bengaluru's Vaswani Centropolis marks a significant addition to its growing portfolio. Valued at INR 28.8 crore, the property offers a promising initial yield of 8.75% and an expected IRR of 15.12%, appealing to investors seeking steady returns. With a six-year lease and plans to expand investment options for smaller investors, hBits is well-positioned to capitalise on Bengaluru's robust commercial real estate market, driven by the IT sector's growth and multinational companies' presence.
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