Startup hBits offers Rs 28 cr commercial property in Mumbai to HNIs for fractional ownership

By March 2024, the platform aims to achieve an AUM of Rs 500 crore.

hBits, which facilitates fractional real estate ownership, has identified a Rs 28 crore commercial property in Mumbai and is approaching high-net-worth individuals for investments. The company has identified 13,500 square feet of commercial real estate in Goregaon, Mumbai. Through this asset, it aims to create an investment opportunity worth Rs 27.31 crore for retail investors.

The commercial asset will be leased to an Indian-origin tech multinational firm, which will renew the agreement for the fourth term, hBits said in a statement. The lease duration will be five years, with a tenant lock-in period of three years.

"Further, the purchase price of the asset translates to a gross entry yield of 9 per cent with an expected internal rate of return of 15.49 percent," the company said. With the launch of this new property, the total assets under management (AUM) of hBits has reached about Rs 260 crore.

By March 2024, the platform aims to achieve an AUM of Rs 500 crore. hBits founder and CEO Shiv Parekh said, "The launch of our latest asset comes at a strategic time when Mumbai is solidifying its spot as the commerce capital of the country. Several global businesses are setting up offices in the city, which is driving a rapid surge in the demand and popularity of commercial real estate".

With Sebi giving its nod to create a regulatory framework for the facilitation of small and medium real estate investment trusts (SM REITs), he said the fractional ownership of real estate is now expected to witness increased participation from retail investors. hBits enables investors to invest in high-yield, Grade-A assets like offices, warehouses, and commercial spaces at a ticket size as low as 25 lakh.

Founded in 2019 by Shiv Parekh, headquartered in Mumbai, hBits group has an AUM of Rs 260 crore from their 9 existing properties.