BHIVE Properties, the commercial real estate investment arm of BHIVE Group, which also runs the largest coworking brand of Bengaluru, BHIVE Workspace, announced its first-ever sale of hard commercial real estate of a Grade A commercial property in Bengaluru, allowing retail investors to earn attractive annual rentals of up to 10.6% on their investment. Retail investors will have direct ownership of an allotted area under an undivided share of the property while reaping rich dividends out of their investments in the form of monthly rentals.
The Grade A commercial property is housed at the Summit A – 8th floor of Brigade Metropolis, a marquee property by Brigade Group, spanning 22940 sq. ft amounting to a property value of approximately Rs 8,936 per square ft. This property has been pre-leased for a term of 15 years which will provide stable monthly returns to investors. It is currently tied up with BHIVE Properties to sell through a secondary sale. Considering both property appreciation and rental yield, the internal rate of return (IRR) for investors is expected to exceed 15% per annum. Furthermore, the property is right in front of the Garudacharapalya metro station of the most popular Purple Line of the Namma metro which runs for 18.2 km from Whitefield, Singayyanapalya or Mahadevapura to Indiranagar, MG Road and connects major city centres and technology parks including Bagmane World Technology Centre.
Commenting on the launch, Shesh Paplikar, Founder and CEO of BHIVE Group said, “While we have been waiting for regulation around MSM REITs to be out, we realised that there is a huge pent-up demand from retail investors to invest in commercial real estate through traditional means. They are very keen to have their sale deed and Khata. So we procured the RERA broker licence, to provide traditional real estate offerings. The traditional real estate offering is also well understood by banks and financial institutions making inheritance and mortgage processes much easier than some of the new-age financial products. We have been receiving an overwhelming response so far and expect the opportunity to get sold out shortly.”
Brigade Metropolis is in close proximity to other commercial properties, housing technology companies and residential localities, making it ideal for occupiers and employees. These factors make it attractive for investors as the commercial space witnesses’ high occupancy consistently. This also assumes significance given the attractiveness of Bengaluru’s commercial real estate which is attracting domestic and global technology giants and startups.
“I have been a believer in BHIVE for many years now. Happy to finally see BHIVE launch this hard real estate opportunity in Bangalore. Looking forward to exploring this for my potential investments.”, said Manjunath Rao, an avid investor.
According to property consultant CBRE, Bengaluru is the biggest office space market in India, accounting for 29% of the total supply in India. The new office space supply across the top seven cities is expected to exceed 165 million square feet between 2023-25 with Bengaluru leading the office space supply, accounting for 29% of the total supply in India.
Rental income from residential real estate is around 2.5% per annum, while commercial real estate rental income is upwards of 8% per annum. Because of the high-ticket size of commercial property investments, only ultra HNIs and institutional investors had the access and opportunity to invest in this high-yield asset class. BHIVE is now avidly working towards making high-return generating commercial real estate properties more accessible to retail investors.
