hBits will raise Rs 44 crore from investors for this property.

Realty firm hBits, which facilitates fractional ownership of commercial properties, plans to raise Rs 44 crore from individual investors looking to acquire 38,000 sq ft area in Mumbai jointly. The concept of fractional ownership is gaining momentum in the office market because of better rental yields.

hBits said it has signed up two floors at Ackruti Centre in Andheri East. ICICI Bank and India Infoline (IIFL) are existing tenants, the company said in a statement.

hBits will raise Rs 44 crore from investors for this property. The total area offered to investors is 38,000 sq ft and the minimum investment is Rs 25 lakh.

Shiv Parekh, Founder of hBits said, “This will be our second investment in this quarter, we have recently closed a Rs 40 crore deal in the month of January 2021. We are only focusing on bringing quality assets for our strong investor’s base.”

Ankush Ahuja, Director, Business Development and Investments, hBits, said the investors can earn a rental yield of 9.2 per cent from this asset.

“The property will be registered under a special purpose vehicle (SPV) and investors will have equity and compulsory convertible debentures (CCD) in this SPV. Property management will be done by hBits for a fixed fee,” Ahuja said.

The company has so far raised Rs 105 crore from investors for various projects. It has five properties/assets under management in Eastern Suburbs and Andheri (E), Mumbai, Maharashtra, comprising 95,000 sq ft.

Mumbai-based hBits was founded in 2019 and offer fractional ownership of leased commercial properties to individual investors.

Source: PTI

(The story has been published from a wire feed without modifications to the text. Only the heading has been changed)

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