Assetmonk, a Hyderabad-based alternative real estate investment platform, is aiming for a three-fold jump in total assets in the next year, betting on the growing demand for asset diversification and alternative investment avenues among wealthy individuals.
Founded in 2016, Assetmonk falls under the category of fractional ownership platforms (FOPs), which have been gaining traction in the real estate space in recent years. As the name implies, FOPs enable retail and high networth individuals (HNIs) to invest in commercial real estate for a fractional ownership of the property. Assetmonk claims to have an asset under management (AUM) of ₹350 crore.
“We are planning to scale it up to ₹450 crore by December 2023 and reach ₹1,000-1,200 crore by the end of 2024,” said Prudhvi Reddy, Founder and COO, Assetmonk.
He was speaking on the sidelines of a press conference in Chennai on Thursday. Assetmonk has acquired an entire floor measuring 90,000 sq ft in Tidel Park, a Grade A commercial property located in Chennai’s IT corridor, for ₹89 crore.
Reddy said although real estate has been one of the favourite asset classes for investors, it was always looked at as a passive investment option. He, however, added that the trend is changing and investors are now looking at commercial real estate as an investment option for diversification.
Assetmonk offers end-to-end investment support in real estate investing right from curation of assets, financial and legal due diligence, monitoring of returns till complete exit from the asset. The company said its portfolio of assets offer returns ranging from 12-18 per cent across fractional real estate and fixed income products. Reddy said investors can start with a minimum investment of ₹10 lakh.
Assetmonk currently manages properties in Chennai, Bengaluru, and Hyderabad and is looking for deals in Mumbai and New Delhi.
Reddy said the company has also launched ‘AM Select’, a structured investment product for HNIs and ultra HNIs.