Fractional Realty Ownership Platform hBits Receives Approval for INR 500 crore Fundraising Via an Alternative Investment Fund

hBits to raise funds

The Securities and Exchange Board of India (SEBI) has authorised the fractional real estate ownership platform hBits to raise over Rs 500 crore through a category II Alternative Investment Fund (AIF) for commercial real estate investments across India's major markets.

The tech-enabled platform is also establishing a feeder fund for foreign investors, the Global Investors Feeder Trust (GIFT), based in GIFT City.

This will be the first such fund raised by any fractional ownership platform in India from investors, including global institutions. The target Internal Rate of Return (IRR) for investors is between 18 and 20%.

As a result of fractional ownership, investors can gain exposure to income-producing real estate assets without the usual large financial commitment. It refers to an arrangement in which a group of investors combine their resources to purchase a property and share ownership of a high-value asset through their investments.

hBits founder Shiv Parekh mentioned that they are committed to democratising investments in commercial real estate. He also added that they have obtained regulatory sanction for the new fund, which increases their readiness to capitalise on the limitless potential of investments in this market segment. The company also feels that with the option of raiseing multiple funds they are in a stronger postion to transform the investment landscape in Indian real estate.

The AIF will invest in grade A properties, such as office buildings, data centres, warehouses, retail spaces, and hospitals. These assets will include under-construction, pre-leased, and operational ventures in the country's six largest cities.