hBits gets Sebi's nod to launch Rs 500 cr Alternate Investment Fund

Startup hBits, a tech-enabled fractional ownership platform, on Thursday said it has received markets regulator Sebi's approval to set up alternate investment fund of Rs 500 crore for investment in commercial real estate.

hBits helps investors in having fractional ownership of commercial assets. It has so far helped in acquisition of 9 rent-yielding properties.

In a statement, the company said it has obtained regulatory approval from the Securities and Exchange Board of India (Sebi) for its CAT II Alternative Investment Fund (AIF).

"This approval grants hBits the opportunity to establish an AIF fund with a substantial Assets Under Management (AUM) of Rs 500 crore," it added.

Investors who participate in hBits' AIF can anticipate an impressive target Internal Rate of Return (IRR) of 18-20 per cent.

CAT II AIF is designed to cater to pan-India Grade-A projects, with a primary focus on commercial real estate assets. This includes a wide range of commercial projects such as offices, retail spaces, data centres, warehouses, and hospitals across under-construction, pre-leased, and completed/operating assets spanning the top 6 metropolitan cities in India.

The company obtained approval from the markets regulator in the last week of May and has now started the process to raise funds from investors such as family offices, Ultra High Net-Worth Individuals (UHNIs), domestic institutional investors, and international funds.

"Securing Sebi's regulatory approval for our CAT II Alternative Investment Fund, boasting an impressive Rs 500 crore AUM, is a momentous accomplishment for hBits. This milestone not only showcases the unwavering trust bestowed upon our platform by investors and regulatory authorities but also signifies our readiness to seize the boundless potential of the commercial real estate market," Shiv Parekh, Founder of hBits, said.

The company would target Grade-A commercial real estate developments across India, Mayank Jain, CIO at hBits, said.

hBits has asset under management (AUM) of Rs 220 crore from their nine existing properties with more than 50,000 registered users.