- Property Share, under Alt, pioneers fractional ownership in India’s commercial real estate sector, transforming property investment since 2015.
- Recognized as India’s first to obtain an SM REIT license, Property Share launched the country’s inaugural listed SM REIT.
- The company targets a Rs 1,500 crore raise through new SM REITs, with a Rs 490 crore Mumbai asset and a Rs 300 crore warehousing venture set for 2024.
- Alt expands its reach into UK warehouse investments, targeting Rs 200 crore, and plans Rs 500 crore in public REIT investments by 2025.
- The Alt Yield Cap Fund II aims for a Rs 500 crore raise by November, with a plan to deploy Rs 100 crore into private credit by June.
- Alt is redefining the landscape of alternative investments, offering innovative opportunities for investors to diversify.
Amid Mumbai’s skyline, a financial revolution unfurls, led by Alt, the visionary holding company of Property Share. Spearheaded by astute minds Kunal Moktan and Hashim Khan, this firm quietly transformed India’s commercial real estate landscape by introducing fractional ownership in 2015. This innovation welcomed investors with as little as Rs 25 lakh, turning dreams of property ownership into tangible reality.
Today, Property Share is more than a curator of Rs 1,600 crore in assets; it is a pioneer. Following the landmark SEBI’s SM REIT regulations in 2024, the company clinched the accolade of being India’s first to obtain an SM REIT license. December saw the debut of their Rs 353 crore asset on the market, a historic moment as India’s first listed SM REIT.
Riding this crest, Moktan and his team chart bold waters. With ambitious plans to gather Rs 1,500 crore through new SM REITs this year, Property Share embarks on strategic expansions. A colossal Rs 490 crore Mumbai asset is set to grace the platform in April, with a striking Rs 300 crore warehousing venture anticipated come May. The goal is audacious yet achievable, projecting beyond the initial Rs 1,500 crore target.
Yet, Alt’s ambitions stretch further. Into UK warehouse investments, AIFs, private credit, and public REITs they foray, with aspirations to acquire Rs 200 crore in UK assets and invest Rs 500 crore in public REITs by 2025. Their second AIF scheme, Alt Yield Cap Fund II, aims to amass Rs 500 crore by November. With plans to deploy Rs 100 crore into private credit by June, Alt sets in motion a trajectory to triple their current asset under management.
Through these strategic ventures, Alt redefines boundaries, opening doors to a frontier of alternative investments. For investors seeking to diversify and seize contemporary financial opportunities, Alt stands as a beacon of innovation and growth.
Here’s Why Alt’s Bold Moves Could Revolutionize Real Estate Investment
How Fractional Ownership is Reshaping Real Estate
Fractional ownership, introduced by Property Share, has democratized property investment, allowing liquidity and accessibility in a traditionally high-barrier industry. Here’s how you can benefit from this model:
How-To Steps & Life Hacks for Investing in Fractional Real Estate
1. Education: Understand fractional ownership thoroughly. Platforms like Property Share provide resources to guide new investors.
2. Platform Selection: Choose the right platform. Evaluate based on factors like asset offerings, historical returns, fees, and user reviews.
3. Investment: Begin with smaller investments to minimize risk while you learn the ropes. Utilize tools like ROI calculators to project potential earnings.
4. Diversify: Spread your investments across different property types and locations to mitigate risk.
5. Monitor & Exit: Regularly check the market conditions and platform insights. They often provide options to sell your share if liquidity is needed.
Real-World Use Cases
– Passive Income: Many investors use fractional ownership for steady rental income without the administrative burdens of direct property ownership.
– Portfolio Diversification: Investors integrate fractional real estate into their asset mix to balance risk with potentially higher returns compared to stocks or bonds.
– International Investment: Platforms like Alt are stretching to UK markets, offering cross-border real estate opportunities previously unavailable to individual investors.
Market Forecasts & Industry Trends
Growth Trajectories
– SM REITs Expansion: According to industry reports, SM REITs are expected to grow by 20% annually in India. As regulatory frameworks like SEBI’s regulations mature, more institutional and retail investors are anticipated.
– Alternative Investments Increase: Experts predict a rise in alternative investments like AIFs and private credit, as seen with Alt’s projected Rs 500 crore in public REIT investments by 2025.
Reviews & Comparisons
– Despite its nascent stage in India, fractional ownership compares favorably with full property ownership in terms of reduced financial risk and operational burden. However, it still requires astute market knowledge and due diligence.
Controversies & Limitations
Limitations
– Liquidity Issues: While they offer more liquidity than traditional real estate, fractional properties can still be less liquid than stocks.
– Market Dependency: Returns are dependent on market conditions and regulatory changes, particularly concerning REIT taxation.
Security & Sustainability
– Platforms generally implement robust security protocols similar to financial institutions, ensuring investment in safe environments. Nevertheless, investors should confirm the platform’s credibility and legal compliance.
Insights & Predictions
– Digital Adaptation: As digital platforms enhance accessibility and transparency, the demand for online-based real estate investments is likely to surge.
– Increased Retail Participation: Given initiatives like Alt’s, more retail investors are expected to enter the market, bridging the gap between sophisticated investment products and everyday investors.
Actionable Recommendations
1. Risk Management: Always perform due diligence; do not rely solely on platform claims. Cross-verify with independent sources.
2. Stay Informed: Keep updated with market trends through reputable financial news channels and investment forums.
3. Budgeting: Allocate no more than a comfortable percentage of your investment capital to fractional ownership, adjusting as you get more familiar with property investment dynamics.
For more information on starting your real estate investment journey, explore resources on Property Share.
With fractional ownership, Property Share and Alt are reshaping the investment landscape, offering unprecedented opportunities for profit and growth. By staying informed and prudent, investors can utilize these platforms to potentially achieve financial goals with reduced risk.
