Big ticket size commercial properties were either owned by institutions or HNIs who used to enjoy a greater yield as opposed to retail investors. Retail investors, on the other hand, were limited to investing in residential projects which offered low Returns on Investment (ROI).
Kunal Moktan, one of the three founding members of Blackstone India, along with Hashim Khan created a tech platform to open investment opportunities in commercial market to retail investors so that they could also earn greater yields through fractional ownership of commercial real estate. Their platform ‘Property Share’ today works with nearly 390 investors with total Asset under Management (AUM) of INR 70 crore.
Manish Joshi from NewsBarons provides excerpts of an interaction with Kunal Moktan, Co-founder & Chief Investment Officer, PropertyShare.in who informs ‘Investors are looking for and more interested in equity investments’.
NB: Explain the USP of PropertyShare?
Kunal: PropertyShare is a market place for fractional ownership of commercial properties across India, wherein, an investor can purchase a slice of a blue chip property with an MNC tenant at 8% yields for a fraction of the total outlay. This makes commercial property accessible to the common investor.
While granting complete ownership of an asset to its individual investors, the cutting-edge platform assumes the responsibility of end-to-end processes from sourcing, due diligence, paperwork, liquidity, asset management, to tenant search on their behalf. This ensures unmatched convenience to its users in booking, investment, maintenance, and sale of commercial property through a centralized and transparent platform.
NB: You invest in commercial. Are you looking at investing in residential properties or other segments?
Kunal: We invest only in commercial properties and we are not looking at investing in residential properties or related segments.
NB: What model do most investors prefer and why? What is the return on investments for investors?
Kunal: Investors are looking for and more interested in equity investments. We pick assets after a lot of due diligence to ensure that these returns are achievable irrespective of geography. All our investments are structured for high returns – 18% to 22%.
NB: What is the minimum to maximum amount one can invest through PropertyShare?
Kunal: The minimum amount that one can invest with PrpoertyShare is INR 20 lakh and the maximum investment can go up till the Total Asset Value.
NB: Any plans to raise funds?
Kunal: Yes. We will be looking at raising funds as and when we expand to overseas locations.
NB: What are the opportunities in overseas markets?
Kunal: There are only a few competitors overseas. The market is nascent enough for more than one player to exist in the domain without any significant disruption or change.
NB: Please indicate the area where you have current investments and future planned expansions across India?
Kunal: We have current investments across Bangalore, Hyderabad, Pune and Mumbai. We are looking to further expand to Delhi NCR, Kolkata and Chennai.