Tech-enabled commercial real estate investment platform PropShare Capital on Tuesday said that it completed funding for its first Covid-19 Distressed Opportunities PMS offering (PDOF I), raising Rs 80 crore from over 150 investors.
In a statement, the company said that while the demand was in excess of Rs 500 crore, the firm chose to make the first closing within two weeks in order to be in a position to deploy money quickly as distressed opportunities become available.
It noted that the Covid-19 pandemic has led to a significant dislocation in financial and real estate markets around the world. While the pandemic has disproportionately affected certain industries like hospitality and airlines and those with high leverage on their balance sheets, it has also created a window of opportunity to purchase high-quality companies and assets at distressed prices.
April and May have seen some of the highest capital raises from institutional real estate funds as smart money begins to chase assets with strong fundamentals available at bargain prices, it said.
“Capitalising on this trend, PropShare Capital launched and successfully completed funding for its 1st Covid-19 Distressed Opportunities PMS offering (PDOF I). The firm closed a Grade A distressed listing offering for INR 80 crore with participation from 150+ investors across HNIs, family offices, retail and institutional investors including a Japanese family office, within a span of two weeks through its platform,” it said.
Kunal Moktan, Co-founder & CEO, PropShare Capital said: “While the pandemic has created stress in the larger real estate market, it has created a unique window of opportunity for investors to access Grade A commercial real estate properties at higher yields and lower prices. We believe PDOF gives PropShare a significant advantage in deploying investor capital quickly and efficiently in high yielding Grade A assets emerging out of the Covid-19 pandemic.”
Back office leasing remains fairly robust in the face of the pandemic as multinationals continue to build teams in cities like Bengaluru, Pune, Hyderabad and Gurugrm to offshore high-cost jobs in the west to lower-cost destinations like India, the statement said.
It further said that the migrant crisis, supply of critical building materials and physical distancing is bound to delay construction timelines leading to lower supply, which could lead to an uptick in rents in the medium term.
