“As some companies are looking for liquidity, Covid gave us the opportunity to acquire commercial assets at the right price. The risk is less in grade A assets, which are usually occupied by large MNCs,” said Aryaman Vir, founder and CEO, MYRE Capital.
The company has raised Rs 100 crore in pre-launch funds and plans to raise and invest Rs 500 crore by March 2021.
Magarpatta Cybercity in Pune is a prominent Grade-A development located in the SBD East micro-market.
“Even when companies were vacating offices in many cities, vacancy at Magarpatta remained low as it promotes walk to work culture,” Vir added.
The proposed office space spans the entire A wing of the 6th floor of tower 12 and is leased to a Grade-A MNC IT tenant, Bentley Systems.
With 7 mn sq ft of office space, Cyber City has just 2.5% vacancy, and is a globally renowned IT hub for MNC tenants such as Amdocs, Accenture, Avaya, RedHat, Infosys, Eaton, and BNY Mellon.
“We have opened the property for investors and have received soft commitments of Rs 8 crore already. We are in the final stages of acquiring another asset in Hyderabad,” said Vir.
Commercial real estate has been the preferred asset class for institutional investors and HNIs due to a stable rental income (8-10% yields) and appreciation potential (17%-25% IRR).
As fractional real estate investing gains momentum during the Covid-19 pandemic, a bunch of players are raising additional funds to invest in multiple grade A commercial assets across Mumbai, NCR and Bengaluru.
MYRE capital said that rent paying commercial property is curated from across India and they are first purchased and only after that investor interest is sought.