Property Share completes funding of Brigade Tech Park, Whitefield worth INR 10 crores
Fractional property ownership platform, Property Share has successfully listed and funded a Rs. 10 crore commercial office property in Brigade Tech Park, ITPL, Bangalore spread over 17,000 sf and tenanted to Standard Chartered Bank. Over 40 owners participated in the property with investment amounts ranging from Rs. 20 lakhs to over a crore at a rental yield of 8.0%.
This was the largest property funded on the platform since inception, indicating a strong and growing interest among common investors in owning a rent generating commercial property at lower capital outlays and without the accompanying management hassles.
Commenting on the closure, Kunal Moktan, Co-founder and Chief Investment Office of Property Share said “There is no product in the market today that provides current returns of 8% with a potential for 10-15% upside without taking too much risk. Commercial property makes those returns possible but high transaction sizes crowds-out the common man making them the perverse of HNIs. We are democratizing that market by using technology and strong investment analysis to bring high-yield Grade A commercial properties tenanted to AAA MNC tenants.”
Property Share operates on a lean team with three investment professionals, collectively contributing over 10 years and $1 billion of institutional commercial real estate investing experience. The platform has a diverse investor profile with over 7,000 users, comprising 40% NRIs and 60% resident Indians.
Till date, Property Share has funded over 35 properties worth INR 70 crore and has distributed more than INR 3 crores in rent. In 2016, Property Share concluded its pre-series A funding round with three investors – Singapore-based Beenext, Pravega Ventures and Mamoru Taniya, Chairman of the Japanese firm Asuka Asset Management.
Larger minimum ticket size of Rs. 20 lakhs brings sophisticated professionals on the platform with 43% in the 20 lakhs bracket, 18 percent between 21 to 50 lakhs, and 38 percent more than INR 50 lakh. A majority of investors (75 percent) belonged to senior level IT professionals in the age group of thirty to forty years.