The new venture, registered in the US, will not only invest in acquiring commercial real estate in the IT capital of India but also explore new geographies.
“In the first phase, the plan is to buy out commercial properties spread over 35,000 sq ft in Bangalore, and then foray into markets like Middle East, Canada, Australia, London and Singapore,” said Shesh Rao Paplikar, co-founder of BHIVE Investech.
The firm is looking to buy out properties worth Rs 200 crore over the next 12 months and is in talks to buy multiple assets in the tech corridor of India.
“Most Indians also invest in second or third apartments for the purpose of renting out and get a paltry return of 2-3% whereas the same investment in commercial real estate can give 8% rental returns and also give long-term capital appreciation,” said Sandeep Gupta, co-founder of BHIVE Investech.
Fractional ownership has emerged as a new way of investment in commercial real estate and has caused extensive rebranding in the realty sector.
While the concept of fractional ownership in real estate has been prevalent in the US and Europe market for a long time, it is now gaining traction in India.
“Fractional ownership companies have created a new set of opportunities for retail investors,” said Vishal Ahuja, India head, Private Health Group, JLL India. “Despite the Covid-19 impact, out of the total fractional ownership market, approx INR 350 crore worth of deals have been transacted in the last one year alone or are in the final stage of conclusion. These transactions are a mix of office and warehousing deals.”
BHIVE is also looking to expand its co-working business in Bengaluru by adding 2,400 seats by the end of 2021. It currently has 4,000 seats across the city catering to small and large companies.