Myre Capital to invest Rs 500 cr in commercial realty assets

Myre Capital, which facilitates real estate investment through fractional ownership, on Monday announced that it will raise Rs 500 crore fund to invest in commercial realty assets across the country after July this year.

The Rs 500-crore Alternate Investment Fund (AIF) will be the first of its neo-realty investment fund, and will raise money from high net-worth individuals, family offices, retail investors and institutional investors, according to an official statement.

The company, a venture by Morphogenesis which claims to provide easy access, transparency, and liquidity to a curated selection of rent-yielding commercial real estate assets, also announced that in 12 months, it has registered over 30,000 investors and has assets under management of over Rs 175 crore.

The proposed AIF will invest in top grade completed commercial real estate rented out by blue-chip tenants for long leases and also some under-construction properties, the statement said, adding that investors can expect monthly rental income from the fund's assets of 8-10 per cent and also capital appreciation. The fund will be targeting an overall internal rate of return of over 20 per cent.

''Our target for the upcoming year is to achieve a 5X growth. We have maintained a 100 per cent rental collection and distribution rate to investors and have achieved a 0 per cent portfolio vacancy rate despite the three pandemic-induced lockdowns,'' its founder and chief executive Aryaman Vir said.

Vir said that there is a strong uptick in commercial real estate activity led by demand that has been pent-up for the last two years, which is leading to unprecedented leasing in major commercial hubs.

The company statement said while high net-worth investors and institutions preferred fractional investments earlier, there has been unprecedented demand from family offices and retail investors from a portfolio diversification perspective with the objective of beating inflation.

It is witnessing demand from high salaried professionals, NRIs, entrepreneurs, lawyers and chartered accountants, the statement said.

The company said it is also working on an asset evaluation algorithm which uses artificial intelligence, machine learning and big data analytics tools to source and evaluate over 1,500 opportunities per month.

Having already launched five properties in Bengaluru, Mumbai and Pune, high interest from the diaspora is making the company keen on exploring a local presence in Dubai, the UK and Singapore to offer global real estate opportunities, the statement said.

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