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Commercial real estate investment platform PropShare Capital on Friday launched its second distressed assets fund since the outbreak of the pandemic with a corpus of Rs 100 crore.
This comes on the back of the success of its first distressed listings offering worth Rs 80 crore earlier this year, PropShare Capital said.
The company made the first close of the second fund on Friday with around Rs 50 crore, while it has already received demand for close to Rs 600 crore.
PropShare is a platform that provides ordinary investors access to rent-yielding commercial real estate at much lower investment thresholds of Rs 50 lakh.
The pandemic has created a rare opportunity to acquire high quality realty assets with blue chip tenants at significantly higher yields, it said.
PropShare had raised Rs 80 crore in its first distressed assets fund earlier this year with participation from HNIs, ordinary investors, family offices and select institutional investors.
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A part of this offering has already been allocated to a Grade A property in Hyderabad with an estimated internal rate of return of 19 per cent, said Kunal Moktan, co-founder and chief executive of PropShare.
By investing in distressed offerings, investors are provided 25 per cent lower management and performance fees, which subsequently increases their cash yield by up to 1.75 per cent, he added.
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