Fractional real estate ownership platform hBits has obtained regulatory approval from the Securities and Exchange Board of India (SEBI) to raise over Rs 500 crore through a Category-II Alternative Investment Fund (AIF). This is geared towards capitalising on the potential of commercial real estate investments across key markets of India.

The AIF will invest in Grade-A properties including data centres and warehousing projects, offices, retail spaces and hospitals. Apart from completed and operational projects, these assets will comprise under-construction and pre-leased activities across six Indian cities.

The tech-enabled platform is also in the process of setting up a feeder fund, the Global Investors Feeder Trust (GIFT), while will be based out of GIFT City to cater to foreign investors. Together, these will offer investment opportunities with superior risk-adjusted returns to investors.

Fractional ownership allows a group of investors to pool in funds to purchase a property, and share passive ownership through their investments. This will be the first such fund raised from investors by any fractional ownership platform in India.