Gurgaon: India’s leading institutional channel partner (ICP) 360 Realtors has forayed into the fractional ownership space through its new company 360 FRXNL. The newly incubated entity will offer transparent and seamless transaction facilities across multiple assets including commercial, residential, industrial, plots, and much more. The company aims at offering institutional-quality deals with the flexibility & convenience of retail investment.
In the next 12 months, 360 FRXNL is aiming at a fundraising of close to INR 500 crores. In another 3 years, it is eyeing a cumulative total of INR 1850 crores.
“360frxnl.com is our attempt to democratize the realty transaction space in India. Through the platform, one can invest in one or more profit-generating assets and earn higher returns. Real estate has a unique proposition. It is a relatively low-risk but high-return tangible asset.
However, the higher acquisition cost of properties sometimes undermines investors’ ability to participate in the segment. With FRXNL we are set to reverse the norm. Now with even INR 10 lacs, one can own a part of a property and make elevated yields” Quoted Mr. Ankit Kansal, MD & Founder, 360 Realtors.
The Global fractional AUM market is on an upswing. As per the report by Knight Frank, the market was sized at USD 5.4 Billion in 2020 and is slated to reach USD 8.9 Billion by 2025, growing at a CAGR of 10.5%. The concept is already very popular in the UK, Singapore, Hong Kong, and Australia.
In India, the market is sized at USD 487 million (INR 4000 crores) and has grown by 170% in the past 4 years. The potential is much vast though. In the grade-A office alone there is a gross asset of INR 550,000 crores (USD 75 Billion) that can be traded under the fractional AUM model. If we add other categories, the market size is even larger.
There are inherent benefits, that make fractional ownership a compelling investment strategy. The entry barrier is low despite access to high-value assets with strong long-term potential. The divestment is easy as the asset can be sold out following majority of the investors agreeing on the same. With the help of fractional ownerships, even with limited bandwidth one can stay invested in one or more properties, which gives ample headspace for diversification.
To manage the business for 360 FRXNL, the group has roped in Mr. Ankush Ahuja as a Co- Founder and Chief Business Officer , an industry veteran with over 2 decades of experience. Prior to joining 360FRXNL, Mr. Ahuja worked with a wide range of companies such as Piramal Capital, hBits, Standard charted bank, Yes bank, DLF Group, etc . Brewing his strong domain knowledge of real estate and financial markets integrated with the acumen of fund management & technology, Mr. Ahuja will be spearheading the platform.
“360 frxnl.com will offer a large pool of assets to discerning buyers and investors. One can choose from multiple options from the platform that include but are not limited to grade-A office spaces, co-working spaces, warehousing land, industrial plots, farmhouses, rental villas & hotels, co-living spaces, SEZ, townhouses, event spaces, and much more.” Quoted Mr. Ahuja.
“Right now, we have created a focused ecosystem and evaluating credible options. We have backward integrated to identify compelling investment options. There is a research and due diligence team in place entrusted with the task of monitoring, evaluating, and identifying attractive investment propositions. The focus is not just on yield but also on underlying structural fundamentals. Likewise, we have forward integrated to develop a full-stack tech-enabled platform that will ensure hassle-free transactions.” Added Mr. Ahuja.
Hiring is going at full pace across multiple streams. Besides regular hiring, the company is also reaching out to seasoned real estate experts under their channel partner empanelment program.
