Commercial Real Estate

For your exclusive business purposes, options we provide you with are specifically tailored to meet your needs. The basic elements of such investments are carefully understood while providing services.

Our commitment to trust, transparency, and quality service is telling of our dedication to the buildings we manage or the tenants who occupy them. If you are a building owner looking to lease, or need property management support, or are searching for available office space, Agarwal Estates will provide comprehensive management and leasing services for business clients and their real estate. Our specialized knowledge of commercial real estate will come handy to you. We will help you find, manage, and retain tenants, oversee leases and financing options, and coordinate property upkeep and marketability. Allow us to put our decades of experience to work for you!

India's Commercial Real Estate has just expanded accessibility from HNIs to you and me. All you have to do is invest in a fraction. Be a part of this stable, low risk investment opportunity and avail:

  • Minimum 25Lacs Investment
  • 8%+ Rental Yield
  • 12-16% Targetted IRR over 5 years
  • Longer Lease
  • Marquee Tenants
Own your share TODAY. Why go with Agarwal Estates:
  • Protecting you from hidden catches and agendas in investment opportunities.
  • While all vendors market every opportunity, we find the right from wrong.
  • Free consultancy and service on fractional ownership deals.
  • Choosing your best interest.

For any queries: invest@agarwalestates.com

FAQs

Fractional Commercial Real Estate
I want to invest in the residential sector, why would it make more sense to invest in fractional ownership in a commercial sector?
Commercial real estate gives a higher yield than residential real estate, but individuals have not had the large amounts needed to invest in commercial property. With Fractional ownership this is now possible. Rental yields are high and appreciation is high as well.
Investing in Residential assets, often means one needs to take a loan, or wait for some time before the asset starts yielding returns.
Most importantly here all one has to do is invest and sit back - earn - track and sell whereas in your residential property you will have to be involved in paper work and other maintenance and upkeep issues and bear expenses too
When I buy an apartment, I get ownership papers that are registered. How does it work with fractional ownership?
Several investors feel more comfortable with investing in something they have known about and have done before. Fractional ownership has been around in India for several decades with builders calling it UDS (undivided share) and over the past few years in a more organized form with companies specializing in these investments. While with an apartment purchase a buyer gets a sale deed that is registered, with fractional ownership one gets share certificates that are registered with the Ministry of Corporate Affairs (MCA). These shares indicate a part ownership of the company that owns the asset in question.
When I want to sell an apartment, I know how to do it. How does it work with fractional ownership?
Fractional ownership assets can be sold in multiple ways.
• A private sale: quite like selling shares on the stock market, you can sell fractional ownership shares to an interested party. An NAV (Net Asset Value) is usually published as a guide to facilitate the valuation of these shares.
• Total asset sale: the asset manager may find a buyer for the complete asset. In such cases, a minimum percentage of owners need to agree to this sale. When this happens, the asset is sold and the proceeds are distributed according to the proportion of shares owned.
What are some of the companies that float assets in this model? Which one would you recommend?
There are several companies that float these assets. In addition to these, many builders also sell their commercial assets in the form of Undivided Share (UDS).
Before we present any assets to our investors, we first perform due diligence on the company. However, as investments are into a specific investment, we perform a more detailed study on the specific property. We provide an unbiased assessment of the asset and opportunity in question along with its benefits and risks.
Is a loan available for buying fractional ownership assets?
No. At this time, no loan is available to buy these assets.
What are my responsibilities once I buy these assets? Who manages the tenant, makes utility payments, property tax etc?
These investments have been designed to be passive investments. An asset manager takes on these responsibilities and charges a fee for the same. This fee is usually 0.5- 1% of the invested amount (per year) and is deducted from the rental payments that are given to you.
What are the fees associated with these investments? I don't like any hidden fees so tell me all fees in advance
All costs for procuring the asset are communicated in a transparent manner at the time of investment. The rental yield is calculated based on the total cost of ownership. All rents that are received paid out to the investors based on the proportion of their ownership. Deductions here are : • Management fee (typically 1%) • Tax deducted at source (government mandate) KEY: Knowledge Empowers You to make informed decisions. The responsibility of paying Income Tax is on the investor and the rate will be based on the investor's tax bracket. GST paid by tenant is not counted towards income. At the time of the sale of the asset, the asset managers charge a performance fee based on the appreciation of the asset. This ensures that their interests are aligned with those of the investors. The performance fee is asset dependent and should be clarified at the time of investment.
Is this the same as a Real Estate Investment Trust (REIT)?
A REIT is an investment corporation / Trust that invests in multiple properties. This means that the funds are distributed across several assets and the investor isn't able to choose which specific asset to select. Further, REITs are listed on the stock exchange and are traded in the same way as stocks and other equities and hence can be volatile. Fractional Ownership investments invest in one property and the investor can choose which specific property to invest in. Further, as this is not listed on the stock market, volatility is avoided. The value of the investment is solely based on the value of the underlying real estate asset and the rental income it is generating. As there is an escalation in rent over time, the value of the asset grows.