Myre Capital, a subsidiary of Morphogenesis Reality Pvt. Ltd, on Thursday, launched a lease-contract discounting investment vertical to offer alternative realty investment opportunities. The neo-realty investment platform aims to scale the new vertical to Rs 350 crore by end of FY23.
The product under this vertical will allow investors to venture into opportunities providing capital to managed leasing players secured by collateral and lease rental receivables from blue chip sub-tenants.
Lease rental discounting is the exchange of money between the tenant who rents the property from the borrower and the lending institution. The owner pledges the lease's monthly rent receipts as security for the loan. Additionally, the lender assesses the borrower's long-term cash flow and approves an LRD-based loan for the specified sum.
The minimum investment stands at Rs 15 lakh and Myre is targeting an internal rate of return (IRR) of 13%.
“With an aim to provide security to our investors, the entire principal amount and interest will be repaid to them within the lock-in period of the lease contract. We see immense appetite and potential for growth for neo-realty products in India and aim to scale this vertical to Rs 350 crore by the end of FY23. 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 chief executive officer, Myre Capital.
Myre will begin the sale of the new investment product offline.
In June, Myre Capital said it raised Rs 50 crore through its offering of the township Magarpatta Cybercity in Pune. In April, it said it would be launching a real estate alternative investment fund (AIF) worth Rs 500 crore ($65.5 million), as it has been witnessing a surging demand for commercial real estate investment from HNIs, family offices, and institutional and retail investors.
In October, Myre closed the second offering of commercial real estate with Vaishnavi Tech Park (VTP), Bengaluru for Rs 70 crore.
Myre Capital is a venture by the architecture firm Morphogenesis. It is a tech-enabled fractional ownership platform that provides access to rent-yielding commercial real estate assets.