Fractional realty ownership platform hBits gets nod to raise Rs 500crore via AIF
Fractional real estate ownership platform hBits has received regulatory approval from the Securities and Exchange Board of India (SEBI) to raise over Rs 500 crore through a category II Alternative Investment Fund (AIF) for commercial real estate investments across India's key markets. The tech-enabled platform is also setting up a feeder fund--the Global Investors Feeder Trust (GIFT)--based out of GIFT City to cater to foreign investors. This will be the first such fund raised from investors including global institutions by any fractional ownership platform in India.
It is targeting the Internal Rate of Return (IRR) in the range of 18-20% for investors. Fractional ownership allows investors to get exposure to income-producing real estate assets without a usual huge monetary undertaking. It refers to a set-up wherein a group of investors pool in funds to purchase a property and share passive ownership of a high-value asset through their investments.
«We are committed to democratising the commercial real estate investments. We have obtained regulatory approval for the new fund that will add to our preparedness to seize the boundless potential of the investments in this segment. This marks the initial step of our journey as we strive to raise multiple funds and transform the investment landscape,» Shiv Parekh, founder, hBits, told ET.
The AIF will invest in grade A properties including offices, data centres and warehousing projects, retail spaces and hospitals. These assets will be across under-construction, pre-leased, besides completed and operational projects across the country's top six cities. «With the combination of Sebi-approved CAT II AIF and the proposed GIFT City-based feeder vehicle, we will be able to offer
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