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Neo-realty investment platform MYRE Capital on Friday announced the launch of its latest structured debt investment opportunity in Hyderabad for accredited investors. The investments will be in the form of high-yield Lease Contract Discounting secured by hard collaterals and lease rental receivables from blue chip tenants like Claranet and iLenSys in Gachibowli, the company said in its statement.
The minimum investment size is ₹15 lakh with a 13% target Internal Rate of Return (IRR).
“This product is launched under MYRE’s new Lease-Contract Discounting Investment vertical to offer first-of-its-kind alternative real estate investment opportunities,” MYRE said in its statement, adding that it aims to raise INR 19.15 crore for this opportunity. “The operator for this property is Skootr Global Private Ltd., which already manages over 6 lakh sq. ft. in India.”
“Our aim is to provide complete transparency and security to our investors therefore the entire principal and interest will be repaid to investors within the lock-in period of the lease contract. We see immense appetite and potential of growth for neo-realty products in India and we aim to scale this vertical to INR 350 crores by the end of next year. We are working on bringing multiple products to the table in the real estate sector for our investors to diversify their portfolio,” said Aryaman Vir, Founder and CEO, MYRE Capital.
In Lease Rental Discounting products, the tenure of the investments is kept below the lock-in period for the sub tenants so that the returns of the investors are secured. The monthly rentals are collected in an escrow account and the first disbursement is made to the investors. With a 13% target IRR, this framework presents a compelling risk-return proposition, providing accredited investors with unprecedented access to differentiated opportunities in the commercial real estate sector, MYRE said.
To begin with, MYRE Capital will operate the vertical offline and intends to transition it online over the next quarter.
With an aim to mitigate risks for investors, MYRE Capital has asked operators to also provide an overarching guarantee. “This means that if on the 12th of any given month, due to any reason whatsoever the funds in the escrow are not sufficient to cover the principal + interest payment to investors, the operator has an obligation to cover the difference by the 15th of the month,” the company explained.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
