hBits, a fractional ownership platform in India, has acquired 13,500 sq. ft. of prime commercial real estate in Mumbai's bustling Goregaon area, valuing at INR 27.31 crore. This strategic move opens a Grade A commercial real estate investment avenue for retail investors. The property, near Mumbai's economic hub, is leased to a prominent Indian-origin multinational tech firm for five years, ensuring a solid 3-year lock-in period. Boasting robust financial metrics with a 9% gross entry yield and a 15.49% expected internal rate of return, hBits aims for an INR 500 crore AUM by March 2024, capitalizing on Mumbai's thriving commercial real estate demand.
hBits, a pioneering fractional ownership platform, has successfully acquired a noteworthy 13,500 square feet of prime commercial real estate in the bustling Goregaon area of Mumbai. This strategic move positions hBits to unlock an investment avenue valued at INR 27.31 crore specifically tailored for retail investors, heralding a democratization of access to Grade A commercial real estate.
Situated in close proximity to the Bombay Exhibition Centre and NESCO in the Western Suburbs of Mumbai – a thriving nexus for IT/ITES, Media, Banks, and Financial Companies – the commercial asset is earmarked for lease to a prominent Indian-origin multinational tech firm. This established tenant is set to renew the agreement for the fourth term, solidifying a lease duration of five years with a notable 3-year lock-in period.
The acquisition's financial metrics are robust, with the purchase price translating to an enticing gross entry yield of 9 percent. Investors can anticipate an attractive expected internal rate of return of 15.49 percent, adding to the allure of this strategic investment opportunity.
This successful launch contributes significantly to hBits' growing portfolio, propelling the total Assets Under Management (AUM) to an approximate INR 260 crores. This milestone follows on the heels of two prior closures totalling INR 89 crores. Undeterred by the past success, hBits harbours ambitious goals, targeting an impressive AUM of INR 500 crores by March 2024, a testament to the platform's robust growth trajectory.
Against the backdrop of Mumbai's ascension as the commerce capital of India, driven by an influx of global businesses establishing roots in the city, the demand for commercial real estate is experiencing an unprecedented surge. The regulatory nod from SEBI to create a framework for small and medium real estate investment trusts (SM REITs), has further encouraged participation from retail investors and heightened capital influx from both domestic and offshore sources.
hBits’ broader mission centres around providing retail investors access to high-yield Grade A commercial real estate assets in India's technology hubs. hBits' unique proposition allows retail customers to invest in fractional ownership of these institutional-grade assets, enabling them to reap the rewards of appreciation. In a strategic convergence of real estate, finance, and technology, hBits emerges as a platform where retail investors can engage in property investment with a well-defined exit strategy.
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