Neo-realty investments platform Myre Capital, a subsidiary of Morphogenesis Reality Pvt Ltd, on Monday said that it will launch a real estate alternative investment fund (AIF) worth Rs 500 crore ($65.5 million), as it has been witnessing a surging demand in commercial real estate investment from HNIs, family offices, institutional and retail investors.
Myre Capital, run by Myre Tech LLP, claimed that the new fund will be a first-of-its-kind, SEBI regulated, Neo-Realty Investment fund.
The AIF will invest in A+ grade completed commercial real estate properties which are tenanted by blue chip tenants for long leases along with a healthy mix of select under construction properties, Myre Capital said in a statement.
“There is a massive uptick in CRE activity led by the pent-up demand that has accrued in the past 2 years - we are seeing unprecedented leasing in the major commercial hubs. Further due to post-pandemic lingering stress, we have been able to secure institutional grade assets at lucrative prices for our investors,” said Aryaman Vir, Founder and Chief Executive Officer, Myre Capital.
The company claimed that investors will earn 8-10% of monthly rental income from the fund's assets and said that investors will also benefit from the capital appreciation.
Myre Capital said that the fund is expected to deliver an overall internal rate of return of 20-25%.
Myre Capital said it is also working on a state-of-the-art proprietary asset evaluation algorithm, which is built on fundamentals of artificial intelligence (AI), machine learning (ML), and big data analytics.
The algorithm works in real time to source and evaluate more than 1,500 opportunities per month, the company said.
The algorithm will promote quantitative decision-making, which will translate to better asset performance and returns for investors, Myre Capital said.
Myre Capital said that it witnessed a 10X growth in its user base in the 12 months, registering over 30,000 investors and claimed to have assets under management (AUM) in excess of Rs 175 crore.
The real estate investment firm said that its user base includes 37% NRI (non-resident Indian) investors from over 16 countries.
“Having aggregated Rs 175crore+ in AUM and over 30,000 users on the platform in the previous 12 months, our target for the upcoming year is to achieve a 5X growth.
We have maintained a 100% rental collection and distribution rate to investors and have achieved a 0% portfolio vacancy rate despite the three pandemic induced lockdowns,” said Vir.
Myre Capital said it has already launched five properties across Bangalore, Mumbai and Pune and is exploring a local presence in markets like Dubai, the UK and Singapore to offer global real estate opportunities to investors in the near future.
In June last year, the company had raised 50 crore through its offering of township Magarpatta Cybercity in Pune.
