Square Yards’ Hyderabad Property Secures ₹112 Cr Investment for Thriving Office Space Market.

Square Yards’ Hyderabad Property Secures ₹112 Cr Investment for Thriving Office Space Market.

Square Yards, a leading real estate and property advisory company, has raised ₹112 crores to acquire a premium office space property in Hyderabad. The investment was led by Admiral Technologies, a US-based software company, along with other prominent investors.

This new development has sparked interest among real estate enthusiasts and investors alike, with many interested in learning more about buying and the potential impact it will have on the real estate market in Hyderabad. In this article, we will dive deeper into Square Yards’ latest move and what it means for the real estate industry in Hyderabad.

The Acquisition

The property has been leased to a leading multinational IT company, ensuring a steady rental income for Square Yards.

The property is equipped with state-of-the-art facilities and amenities, making it an attractive option for businesses looking for a premium office space. Its strategic location also adds to its appeal, with easy access to major transportation hubs and commercial areas in the city.

Square Yards, a proptech company that just began assisting investors with fractional ownership of commercial buildings, has secured Rs 112 crore from high net-worth people to fund the purchase of office premises in Hyderabad, totalling more than 1 lakh square feet.

According to Square Yards, a company that specialises in the real estate and loan brokerage industry, this is the first property that the company is making available to investors for fractional ownership.

According to a statement released on Sunday, PropsAMC, the asset management services and data intelligence division of Square Yards, has funded Rs 112 crore for its first Grade A commercial property in Hyderabad. With over 250 investors contributing an average of Rs 40 lakh, the initiative is Square Yards’ first foray into the fractional product category.

This milestone of over Rs 100 crore in AUM (asset under management) demonstrates the unwavering confidence that investors have placed in our platform.” Tanuj Shori, the CEO and founder of Square Yards, said.

According to him, the main objective is to assist investors in generating sizable returns through property capital gains and rental income.

Building a variety of assets across tier-I cities and concentrating on properties that give greater periodic yields and exit returns will help us attain an AUM of Rs 1,000 crore within the next six months, Shori stated.

The commercial property in Hyderabad is expected to provide investors with an XIRR (extended internal rate of return) of 14-15%, after fees and prior to taxes. Investors in a fractional ownership model have a stake in a special purpose vehicle (SPV) (often a private limited company) that owns and manages a portfolio of real estate.

Square Yards, as the intermediary, will list the properties for sale on its website and actively seek investment from HNIs to fund the acquisition. In this case, Square Yards is in charge of the investors’ property, the structure itself, and the limited-purpose company.

The tenant continues to make monthly rental payments to the SPV, which are then proportionately dispersed to all investors. The practice of purchasing a fractional ownership interest in business properties is gradually gaining popularity as the commercial real estate industry undergoes a digital transition.

According to Anand Moorthy, the Chief Business Officer of Square Yards’ Asset Management Services and Data Intelligence, there are four to five competitors in India’s still-emerging fractional ownership market, which has a projected AUM of Rs. 1,200 crores.

The leading companies in this field include Myre Capital, Strata, hBits, and Propcatalyst. In addition to commercial assets, Moorthy stated that the participants might begin fractional offerings in industrial assets, schools, student housing, hospitals, land, etc., in the upcoming years.

The Investment: What It Means for Square Yards

The investment of ₹112 crore is a significant milestone for Square Yards, as it marks the company’s foray into the commercial real estate market. The move is part of Square Yards’ expansion plans, aimed at diversifying its portfolio and creating new revenue streams.

The acquisition of this premium office space property not only ensures a steady rental income for Square Yards but also strengthens the company’s position in the real estate market in Hyderabad. The move is expected to generate interest from other investors, with the potential for further acquisitions and investments in the future.

Impact on the Real Estate Market in Hyderabad

Hyderabad has emerged as a key market for real estate investments in recent years thanks to its thriving economy, growing population, and strategic location. The city has witnessed a surge in demand for commercial real estate, particularly in the IT and e-commerce sectors.

Square Yards’ acquisition of this prime office space property is expected to assist the real estate market in Hyderabad. The decision is probably going to bring in more investors and open up fresh growth and development options for the city.

The acquisition is also expected to boost the confidence of other investors in the real estate market in Hyderabad, further strengthening the city’s position as a leading destination for real estate investments.

Conclusion

Square Yards’ latest acquisition of a premium office space property in Hyderabad is a significant move for the company and the real estate industry in the city. The investment of ₹112 crore marks the company’s entry into the commercial real estate market and is expected to create new opportunities for growth and development.

The action is probably going to bring in more investors, further solidifying Hyderabad’s position as a top location for real estate investments. In the years to come, Hyderabad’s real estate market is expected to continue to expand and flourish as a result of the possibility of additional purchases and investments.

Edited by Prakriti Arora