Grip, an alternative investment platform, has added commercial real estate (CRE) as a new product offering to help individual investors invest in pre-leased commercial properties.
For this, Grip has partnered with Strata, a leading CRE investment platform, to enable individual investors to invest in grade-A pre-leased commercial properties at a fractionalized investment amount of ₹1,00,000, as per the company. Strata will identify the commercial properties (such as offices, industrial warehouses, retail, data centers), and undertake the due diligence, find marquee tenants, and in certain situations complete the fit-outs. Tenants are established MNCs with a good credit profile and offer long lock-in/lease tenures and contracted rental escalations, according to company’s press release.
“Millennials are constantly on the lookout for new investment avenues, and given the increased uncertainties in the COVID-impacted world, the need for diversification into alternative investments is more than ever. By partnering with Grip, we can make commercial property investments accessible to more millennial investors at a fraction of the high investment amounts traditionally required to invest in commercial properties,” said Sudarshan Lodha, co-founder and CEO, of Strata.
Through the CRE product offered by Grip in partnership with Strata, investors can earn up to 11% pre-tax yield; with the consideration that the inherent land value appreciates over time. Investors need to do their due diligence before investing in this product.
“Stock market volatility has unnerved a significant majority of the individual investors. We have witnessed an uptick in interest and funds rationed towards non-market linked investment opportunities aka alternative assets. We decided to add CRE to our portfolio and are incredibly excited about our partnership with the market leader Strata. With this offering, we hope to democratize commercial real estate for all and ensure accessibility at a low minimum investment amount,” said Grip, Nikhil Aggarwal, Founder and CEO, Grip.
Grip has enabled the CRE investments through a partnership with a SEBI-registered alternative investment fund (“AIF”). The AIF ensures that funds to be invested in each opportunity are raised through a separate scheme.
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