IIM GLOBAL
VENTURES
Alternative Investment Fund
A SEBI Registered Category || Alternative Investment Fund (AIF)
Our Category II AIF (Alternative Investment Fund) is structured to focus on Grade-A projects across India, specifically targeting commercial real estate assets. This includes an extensive range of projects, from office spaces and retail centers to data centers, warehouses, and hospitals, encompassing under-construction, pre-leased, and fully operational assets.
Investing in commercial assets at various development stages, our AIF provides a diversified portfolio that leverages the growth of India’s real estate market. Investors can anticipate a targeted Internal Rate of Return (IRR) between 18% and 20%.
Alternative Investment Fund
Real Estate Fund I is a SEBI-registered Category II AIF targeting INR 500 crore in equity investments focused on high-quality Indian commercial real estate. The fund prioritizes income-generating, pre-leased, and under-construction Grade-A properties, including premier offices and warehouses.
IRR Expectations
Investment Focus
Our fund seeks investment opportunities across all phases of real estate development, from under-construction projects to assets with established lease agreements.
Focused on Commercial Real Estate (CRE), we invest in office complexes, data centers, warehouses, industrial parks, educational institutions, and hospitals throughout India, with a strong emphasis on the top six cities.
Preleased
Investment Allocation: 50-60%
(Grade-A pre-leased assets with strong occupiers residual lock-in period and periodic escalations)
Under construction
Investment Allocation: 40-50%
(Early-stage construction with land and all regulatory approvals in place)
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Can an NRI acquire immovable property in India?Yes, An NRI can acquire property in India, according to Reserve Bank of India (RBI) and FEMA regulations. However, in most cases, an NRI cannot purchase agricultural land, plantation property, or farm buildings in India.
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How to invest in real estate in India by NRI?NRIs who want to invest in real estate in India should open an NRI account with any of the permitted Indian banks. NRI property investors must route their transactions via Indian banks, and they must utilise NRE/NRO accounts for any inward money remittances as per the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI) regulation.
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How does an NRI complete a property purchase transaction?NRI can transmit the funds to India from overseas via standard banking channels or via balance in an NRE, NRO, or FCNR account when making a property purchase payment. If the NRI is unable to make the transaction in person, he/she can make an agreement and have the Power of Attorney in the name of the relative or lawyer/agent to complete the transaction.
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Can NRIs invest in commercial real estate (“CRE”) through fractional ownership?Yes, like residents, NRIs (Non-Resident Indians) can also invest in CRE in India through Fractional Ownership. An NRI investor needs to have an NRO/ NRE account to invest in commercial real estate in India.
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What are the documents required by NRI to invest in CRE?Following are the documents required by NRIs to invest in real estate in India: 1.Passport 2.PAN card 3.Power of Attorney 4.Tax Residency Certificate (If applicable) 5.Address proof (Same as Passport) 6.Bank Details
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What is a TRC? How can I get a TRC?A TRC is a Tax Residency Certificate provided by the country where you are currently residing. India has a Double Tax Avoidance Agreement (DTAA) with almost all major countries that reduce TDS to lower thresholds of 10-15% (depending on the provisions of the DTAA). However, the benefit of the reduced tax rate is only available to users who are able to produce a TRC. Please speak to your tax advisor on how you can procure a TRC for your country of residence.
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What is the tax treatment of real estate investment gains by an NRI?The TDS is deducted @ 31.2 % (i.e, TDS@ 30 % + Cess@ 4%) as per section 195 of the Income Tax Act. , unless a TRC (Tax Residency Certificate) is furnished by the NRI investor, post which that TDS will be deducted, as agreed upon in the Double Taxation Avoidance Agreement (DTAA) with that country. India has signed DTAA with multiple countries to ease the burden of taxation for NRI investors. It is usually 10 to 15% for the investor.
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I do not have any taxable income in India. Why do I still need to pay tax?Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as TDS (tax Deducted at Source). Such an NRI can claim refund of taxes withheld by filing a tax return in India.
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Is fractional ownership in real estate a good investment?Fractional ownership of property allows them to invest in pre-leased Grade A CRE properties with amounts starting as low as Rs. 25 lakh, an investor earns an average 8-9% rental yield, paid monthly and can get an overall IRR of 14-15% including capital appreciation. Fractional owenrship takes away all the hassle of managing the property (i.e tenant related, property repairs related, managing broker, maintainence etc) and allows investors to keep their steady income flow.
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Is fractional ownership legal in India?Yes, it is legal. Depending upon the SPV - whether it is a company or a partnership firm, releavant laws of Companies Act 2013 or the Limited Liability Partnership Act 2008 apply respectively.
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Is fractional ownership investment in CRE safe?Yes, fractional investments of CRE is safe. The investment is secured by a water-tight Leave and License Agreement (LLA) and the investors are hold proportionate stake in the company backed by the underlying pre-leased asset.
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Can a Non-resident Indian use the platform?Yes. All NRIs, can own fractional real estate (on non-repatriation basis) through the hBits Platform. NRIs must ensure that the funds are transferred from NRE or NRO account in compliance with the foreign exchange regulations.
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How do the distributions and sale proceeds get credited to the NRI bank accounts?Any form of distribution (rental income or sale proceeds) will be credited to your NRO account from where one can transfer it to your NRE account.