Pre Leased office to ICICI Bank & IIFL on Sale. 9% ROI. Minimum investment 25Lacs – Fractional Ownership – Ackruti Trade Centre – Andheri East – Detailed Review
To download the ROI Calculator – please call Raj Shah on 9820855056 or Rishi Dedhia on 9930881999
| No. | Deal Evaluation | Rating Out Of | Rating | Proposal Scenario | Ideal Scenario |
| 1 | Tenant Industry Outlook | 1 | 1 | Finance | The financial sector forms an integral part of the economy |
| 2 | Tenant | 1 | 1 | IIFL & ICICI | A Grade Tenants |
| 3 | Location | 1 | 1 | Andheri (E) | Excellent Location |
| 4 | Lock-in | 1 | 0.5 | 3 Years & 5 years | 3 years + recommended for offices |
| 5A | Duration | 0.5 | 0.5 | 5 Years & 9 Years | 5 years min recommended |
| 5B | Increment | 0.5 | 0.5 | 12.5 % every 3 years | 5 % annually OR 15% every 3 years recommended. |
| 6A | Rent start date | 0.5 | 0.5 | Immediate | Feb 2021 (ICICI) & March 2021 (IIFL) |
| 6B | Deposit | 0.5 | 0.5 | 6 Months | 6 months is recommended. |
| 7A | Tenant Stickiness (Fit Outs) | 0.5 | 0.5 | By Tenant | High CAPEX = low incentive to move out. |
| 7B | Tenant Stickiness (Rent per Sq.Ft) | 0.5 | 0.5 | 83/Sq. Ft. | Lower than market = low incentive to move out. |
| 8 | ROI (Rental Yield) | 1 | 1 | Entry 7.8% net (9.2% Gross) | 8% + is recommended. |
| 9A | Capital Appreciation | 0.5 | 0 | The proposed is 5% every year. For this asset, we recommend a long term approach for achieving 5% appreciation | 5% – 7% every year is conservative approach & is recommended. |
| 9B | Asset Grade | 0.5 | 0 | Proposed is a Grade A asset | Grade A assets are recommended as they are fully equipped and also are industry independent structures which indicates that they are suitable for multiple industries |
| 10A | Leverage (LRD Available?) | 0.5 | 0 | No | LRD availability would make it an ideal proposal. |
| 10B | Exit Options | 0.5 | 0.5 | No lock-in. The secondary market still developing. | No lock-in to sell recommended. |
| Total | 10 | 8 |
Frequently Asked Questions
What is Fractional Ownership
Fractional Ownership V/S other investments
What the above chart does not mention is liquidity – Commercial CRE scores low on that. While one could argue that the shares are in Demat format – what we mean is that exiting it would still take about 4-6 months.
The ecosystem is still developing – probably in a year or so we would be able to trade your shares as easily as stocks – that’s when we could truly add ‘liquidity’ as a benefit.
For any more questions, you may have, please call Raj Shah on 9820855056 or Rishi Dedhia on 9930881999
Final Note
An interesting fractional ownership product from hBits. We would have preferred that the two tenants were not combined. Separate assets would have been ideal.
To invest please call Raj Shah on 9820855056 or Rishi Dedhia on 9930881999
Property Features
- Fractional
