* Office asset leased to Smartworks and further subleased to Groww
MYRE Capital is India’s first Neo-Realty investment platform. It is a venture by renowned architectural firm Morphogenesis. MYRE ended calendar year 2021 having aggregated 100+ crore in AUM. They have begun this year with the launch of their latest offering in Vaishnavi Tech Park (VTP), Bangalore.
MYRE Capital is providing investors an opportunity to invest in a rare commercial real estate (CRE) institutional grade asset with a minimum investment of 25 lakhs. The proposed space of 36,230 Sq. Ft. is situated in the south tower of VTP and spans the entire 4th floor. This opportunity is set to offer an entry yield of 8.7% and a target internal rate of return (IRR) of 16.2%. This comes at a time when office space demand in Bangalore is expected to be at pre-pandemic levels in 2022, strongly led by the financial and tech sectors. Bangalore is widely regarded as ‘The Silicon Valley of India’ owing to the presence of the largest IT firms in the country.
Vaishnavi Tech Park (VTP) is located strategically at the intersection of Outer Ring Road (ORR) and Sarjapur Micro Market. ORR is the largest IT hub of Bangalore whilst the Sarjapur Micro Market has a 0% vacancy rate. These micro markets are home to some of the most prominent MNC tenants, including - LinkedIn, Deloitte, Microsoft, Accenture, HCL, Tata, Wipro. Due to the favourable micro market fundamentals, historically the buildings in this area have been majorly owned by institutional investors with a long term plan to retain these assets. This limits the available stock for sale in this micro market for HNI’s and retail investors to acquire making VTP a rare off market opportunity.
VTP is a newly constructed development with 2 office towers and a dedicated retail space. As a testament to the quality of the asset, the entire development has been designed for IGBC platinum rating. State of the art construction technology has been used to achieve long term minimisation of utility cost and maintenance cost.
The subject building has been entirely leased to Smartworks, the market leader in managed leasing solutions, for a total tenure of 9 years. Considering the strong demand from blue chip tenants and MNC occupiers, within a few days of taking up the space, Smartworks has been able to sub tenant more than 90% of the tower to enterprise clientele. Smart works is the largest operator in the managed leasing space and have demonstrated strong leasing capabilities by securing 500+ enterprise clientele in their pan India offices, including Amazon, Tata, EY, Starbucks, Microsoft among others. The space being acquired by MYRE is occupied by Groww, one of the largest fintech platforms in the country. Groww recently on-boarded Mr. Satya Nadella, executive chairman & CEO and of Microsoft, as an investor and active board advisor. Groww is also the anchor subtenant in VTP.
MYRE Capital has also launched a first of its kind 3D virtual walkthrough tour of the development which takes the investors through the entire property virtually, for them to get a more meaningful insight of the development.
Speaking on the development, Mr. Aryaman Vir, Founder & CEO, MYRE Capital said “We are elated to launch our newest offering in one of the largest office markets in the country. Managed leasing is the future of CRE and we have brought this revolution to our investors by offering them the second property in this domain. While the asset we are offering has great micro market fundamentals, attractive lease terms and marquee tenants, the main highlight that differentiates this building is the unparalleled asset quality and the use of futuristic energy efficient and sustainable architecture - making it a preferred choice for environmentally conscious occupiers. Sustainability is the new revolution and we also want to be a part of it through our property offerings. We have also been able to negotiate an attractive capital value, which is at a significant discount to market rate.”
One of the key benefits for landlord in managed leasing is that the operator is contractually liable to service the agreed upon rental irrespective of sub tenant occupancy. In a post pandemic world, Managed leasing has become the preferred leasing model for corporates and MNC tenants. Landlords and investors are also preferring to lease their office space to managed leasing operators due to the added layer of rental security and stability with minimal vacancy risk.
This asset offered by MYRE Capital is pre-leased and managed so investors can look to earn stable monthly rental income and long term capital appreciation. Through MYRE Capital’s expertise and offering, investors can build their Commercial Real Estate portfolio and begin a secure investment journey.
Some of the flagship properties in the MYRE portfolio include - Maker Maxity (BKC Mumbai); Magarpatta Cybercity (Pune); Times Square (Mumbai).