Definite, an innovative startup in prop-tech space that provides fractional real estate ownership to investors in commercial real estate, has recently announced its plans to raise Rs. 15 Cr from its individual private investors. It is the company’s first commercial fractional real estate opportunity that will provide a high rental yield to the investors.
The commercial space is located in Magarpatta City (Pune) with a prominent tenant. It is a fully-furnished office space with a capacity of two hundred plus people. Definite will raise Rs. 15 Cr. to purchase this property and will offer the total area of 15,135 sqft to investors. It will provide fractional ownership to the investors with a minimum investment amount of Rs. 25 Lakhs.
For the past 2 years, Magarpatta is witnessing a rising demand as it is one of the hot properties in Pune and features key factors like boasting of close proximity to the airport and shopping complexes. In the coming times, the area is expected to grow further.
Varun Mohan, CEO & Founder of Definite said, “This is our first real estate opportunity that is focusing on offering maximized returns to the investors. The asset has high rental yields, favorable lease terms, and significant potential for growth. With this opportunity, we are looking to provide 9.94 percent avg. rental yield.”
The lease of the asset is for 7 years with a lock-in period of 5 years. The rent of the asset is Rs. 71.8 / sq./ month with an escalation of 15 percent in the rent after every 3 years. The asset provides an average rental yield of 9.80 percent for a period of 7 years to regular investors and 9.94 percent for early investors.
The commercial asset will be registered under Special Purpose Vehicle. Furthermore, the SPV and the asset will be managed by Definite. The company uses the state-of-the-art platform to drive equality and transparency for investors.
Since the inception, Definite has built an in-house team of 15+ professionals with over $1 billion of combined transaction experience. It has extensive plans in the pipeline and projecting to manage a portfolio of assets worth Rs 500 Cr. by the end of 2021. Moreover, it is also planning to add a database of up to 10000 active investors on the platform.