Property Share eyes $3b AUM
Property Share, a Bengaluru-based startup that enables fractional property ownership, aims to manage nearly USD 3 billion worth of rental properties over the next three-four years, as it plans to make a foray into the British and Australian markets this year.
The online marketplace allows users to directly own completed real estate with other like-minded owners by letting investors purchase and lend/borrow against fractional shares in complete rent-generating commercial properties.
“Currently, we have 20 properties listed on the portal worth nearly Rs 70 crore. We want to increase this to USD 2-3 billion over the next three-four years,” co-founder and chief investment officer Kunal Moktan told PTI.
Currently, its portfolio includes properties in Bengaluru, Hyderabad, Pune and Mumbai.
“We want to expand our reach in the eight major metros which will also include Chennai, Kolkata, Gurgaon and Noida. Our model so far has been to own rented spaces that could provide yields upwards of 8 per cent per annum.
“But going forward we hope to buy completed and rented out commercial buildings, hotels, hospitals, retail malls, warehouses, or any real estate asset providing a rental yield of at least 8-10 per cent,” he said.
He claimed that they have 40,000 investors registered on the portal which also include NRIs.
“Weve also decided to enter British and Australian markets this year as these markets allow such fractional investment models.
“There are a few already functional there and so we are looking at these markets to expand our business,” Moktan said, adding he is awaiting licences which he expects to be in place by mid-2018.
“We are hopeful of getting licences by mid 2018 and our first property listing will be in Britain. We have identified a bunch of properties in London but will not finalise any deal until we get our licences,” he said.
Property Share, backed by three venture capital and asset management firms including Japans Asuka, Pravega Ventures and the Singapore-based Beenext, is also looking at raising USD 10-15 million to fund its overseas plans.
“We will manage the entire business from India as we have the technology and the expertise. Well need to invest in sales teams in these markets. With this we want to tap not only global investors but also Indians who want to invest in properties in Britain or Australia as they can earn yields in foreign exchange,” he said.