Hyderabad: PropsAMC, the asset management services and data intelligence arm of Square Yards, launched its maiden fractional ownership real estate investment platform backed by proprietary data and analytical capabilities. The platform offers a 7-9 per cent annual entry yield plus property appreciation targeting a total of 14-15 per cent XIRR on capital invested over a span of 3-6 years. Anand Moorthy, co-founder and CBO (asset management services and data intelligence), Square Yards, said: “This can be the biggest alternative investment for investors who like to hedge against pure equity or other debt investments. With fractional ownership, middle-class Indians can now own multiple investable properties with minimum or no development risks and make them a financial instrument to trade in the future.”
Tanuj Shori, Founder and CEO, Square Yards, said: “India’s commercial real estate market has for long been dominated by high net-worth individuals and institutions. With Square Yards’ fractional ownership real estate investment program, investors can build a diversified portfolio at a lower acquisition cost.”
The concept of real estate fractional investing has attracted the attention of investors as they offer solid yields with predictable cash flows along with capital appreciation in a short period of time, despite market upheavals; something which equity, mutual fund markets cannot assure. It doesn’t carry the volatility of the REITs, which could be due to external reasons or global market sentiments.
The present market capitalization of three REITs in India is USD 10 billion with an average annual payout of approximately 6 per cent. The domestic participation in REITs is less than 25 per cent.