Architect firm Morphogenesis plans to invest Rs 100 crore through its real estate arm to develop about 2 lakh square ft of Grade A office space in Delhi’s Okhla, Manit Rastogi, Founding Partner, Morphogenesis told ET.
The company, through a joint development model, has developed 50,000 sq ft of office space and plan to take 4-5 similar projects in the micro markets.
“This market has many such smaller plots that requires redevelopment. The floors or buildings can be used for company’s headquarter. We are in talk with land owners as there is a demand for quality space,” said Rastogi.
Morphogenesis also has a neo-realty investments platform MYRE Capital, which is in the process of staring Rs 500 crore Alternative Investment Fund (AIF) by July 2022.
In additional, it also has a fractional ownership platform which has witnessed a 10X growth in its user base within 12 months, registering over 30,000 investors and an AUM in excess of Rs 175 crore.
“We have maintained a 100% rental collection and distribution rate to investors and have achieved a 0% portfolio vacancy rate despite the three pandemic induced lockdowns. There is a massive uptick in CRE activity led by the pent up demand that has accrued in the past 2 years – we are seeing unprecedented leasing in the major commercial hubs,” said Aryaman Vir, Founder & CEO, MYRE Capital.
To meet demand for CRE investment from HNIs, family offices, institutional and retail investors, MYRE Capital will be launching Rs 500 crore Alternative Investment Fund (AIF) by July 2022.
The AIF will invest in A+ grade completed commercial real estate properties which are tenanted by blue chip tenants for long leases along with a healthy mix of select under construction properties.
Investors will earn stable monthly rental income from the fund’s assets of 8%-10% and will also benefit from the capital appreciation. The fund is expected to deliver an overall internal rate of return of 20%-25%.
“With these three different business model, we can offer a complete package on commercial real estate. The office space we will construct, we will keep it with us and only offer it on rental,” said Rastogi.
Investments in CRE has always been one of the preferred asset classes for institutional investors and HNI’s – via the fractional ownership model.
MYRE Capital is also working on a proprietary asset evaluation algorithm. This algorithm is built on the fundamentals of artificial intelligence, machine learning, and big data analytics.
It works in real time to source and evaluate 1500+ opportunities per month. The algorithm will promote quantitative decision making translating to superior asset performance and returns for investors.
MYRE Capital has already launched five properties across Bangalore, Mumbai & Pune. With the increasing NRI traction that the company is witnessing, the fractional CRE platform is exploring a local presence in markets like Dubai, the UK and Singapore to offer global real estate opportunities to investors in the near future.