The company already has listed pre-leased Grade ‘A’ office spaces in Mumbai
Bangalore, NFAPost: YieldAsset Real Estate Tech Pvt Ltd, a proptech startup, which enables fractional ownership in institutional-grade commercial real estate (CRE) has announced that it aims to have Rs 100 crore worth assets under management (AUM) by the end of September quarter.
YieldAsset has already listed two assets of Grade ‘A’ office space in Mumbai and is in the final stages of signing few more commercial assets in prime locations in Mumbai, Bengaluru and Pune.
Since its inception less than a year ago, YieldAsset has created a sizable base of investors in India and overseas. The past listings on the company’s platform have witnessed wide participation from HNIs’, entrepreneurs, professionals and retail investors.
Investor base
The platform uses technology to increase the depth of its investor base and making the whole process of acquisition and management hassle-free.
YieldAsset Founder Rajesh Binner said the company is looking forward to scaling up its offerings in coming months.
“The Grade-A Office real estate remains a preferred asset class for investors to add rental income portfolio owing to the asset’s robust fundamentals and resilience. By bringing investors and asset owners in line on a tech-enabled platform, YieldAsset offers the best opportunities to non-institutional investors to participate in this asset classes,” said Rajesh Binner.
Wealth management
Rajesh Binner also said YieldAsset is also entering into a strategic partnership with few leading Wealth Management firms to offer fractional ownership of commercial properties to investors associated with them.
“Going forward, the company will also be looking at other asset classes such as warehouses, data centers, student housing, industrial assets, amongst others,” said Rajesh Binner.
Commenting on the same, YieldAsset Co-founder Riaz Maniyar said Investment in rental yielding commercial real estate has generated great wealth to investors.
“However, it has been available only to those with right connections and deep pockets. This asset class and its benefits have been out of reach for most of people. Fractional ownership is the future of real estate market as it addresses an important issue with commercial property – high entry barrier of large capital investment,” said Riaz Maniyar.
Ultra-HNIs
Riaz Maniyar said it also enables investors to earn monthly rent from fractional ownership of these assets and build long term wealth as property price increases. “We are democratising investment in commercial real estate that has been a purview of ultra-HNIs and institutions. We follow a rigorous vetting process before on boarding any property,” said Riaz Maniyar.
As per a recent report by Knight Frank, private equity investment in real estate jumped over 16-fold in January-March 2021 to $3.24 billion, which was largely institutional. The investment stood at a mere $199 million in Q1 of 2020 calendar year.
YieldAsset has been on a journey to offer unique investment opportunities in the CRE space by fractionalizing CRE and offering it on an easy-to-use online platform. Yield Asset’s endeavor is to simplify the investment process and pocket-size the investment amount so that small investors can add its benefits to their investment portfolio.
In the next few years, fractional ownership is expected to be one of top lucrative investment options due to its low risk and high return model.
