Simple and digitally-enabled investment process for investors
Low minimum investment (starting at INR 5Lakhs*) enabling access to institutional quality real estate opportunities.
Hassle-free real estate ownership with Hissedari.com in managing operations, distributing rental yield and facilitating exit.
Enhanced Liquidity Solutions via proprietary Hissedari.com.
Once verified, a virtual account will be created and you can now invest in any open opportunity listed on the platform.
To do so, all you need to do is just a click on the ‘Invest Now’ button and confirm your investment details.
If you decide to move forward and block your investment, you will need to e-sign a binding Expression of Interest (EOI) and transfer the initial 10% token advance to a virtual account, which you will find on your dashboard.
You will receive all necessary property and SPV-related documents for your perusal and scrutiny.
Once 100% commitment is received from interested investors, the opportunity is considered to be fully funded.
You will then be required to transfer the remaining amount into your virtual account.
Your investment amount will then be routed through an escrow mechanism to the share subscription accounts and ultimately, to the current account of the SPV.
You will be allocated equity shares and compulsorily convertible debentures (CCDs) in the Private Limited Company.
The SPV will then proceed to purchase the asset.
Our presentations, webinars and discussions only indicate projected returns. We advise potential investors to be cautious of any scheme which provides guaranteed returns.
Your investment is in the form of equity shares and compulsorily convertible debentures in a Private Limited Company, incorporated for the sole purpose of acquiring and owning the asset by virtue of holding equity shares in the SPV, you are true owner of the asset.
The SPV is bound to comply with statutory requirements such as holding general meetings, filing returns, etc., that are undertaken by third-party consultants. Due to this structure, the ultimate decision-making power lies with the investors alone.
As the asset is registered as a separate entity and Hissedari.com simply acts as an asset manager, Hissedari.com could be replaced by another asset management firm that would continue to provide the same services as Hissedari.com. Thus, even if Hissedari.com is not functional, your ownership and control of the asset remain secure and even the records are stored in appropriate public databases such as Ministry of Corporate Affairs website.
A) 1% annual management fee that is charged on the monthly payout.
B) During exit, a performance fee of 20% on the gains above a hurdle rate of 10% IRR will be charged.
For example, let us take a scenario where a sale of property happens after 5 years. On a property value of 25,00,000 lakh, gains calculated at 10% IRR after 5 years would be ~Rs. 13,27,500.(Sale Value + Rentals - Cost of Investment)
If the investor realizes gains on the property of Rs. 14, 00,000 (Sale Value + Rentals - Cost of Investment) we would charge 20% on Rs. 72,500 (14,00,000-13,27,500) i.e. Rs 14,500. If an investor earns below 10% IRR, no performance fee is charged.
Residential status as per Income Tax Act, 1961 | Withholding Tax rate (TDS) |
Resident | 10% |
*Non-resident Individual (“NRI”) | 30% (plus applicable surcharge and cess)* |
*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
Resident Indians can submit Form 15G/15H and NRI’s* can submit TRC for reduced TDS
NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax Residency Certificate (“TRC”).
Rents: Rents received from the property are distributed as interest on debentures. It is taxable in the hands of the investors under “Income from Other Sources” at the applicable tax slab.
Capital Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the shares and debentures were held (short-term vs long-term).
Short-term Capital Gain will be applicable if the shares and debentures are sold before 24 and 36 months respectively this will be taxed at the rate applicable to the investor.
Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 and 36 months respectively. It will be taxed at 20%, irrespective of the quantum of gains.
The benefit of indexation may be explored in the case of long-term capital gains. (Holding Period 2 years for shares and 3 years for Debentures).
1) Residents - 10% (plus applicable surcharge and cess).
2) NRI - 30% (plus applicable surcharge and cess)
TDS Certificate will be issued every quarter by MYRE on behalf of the SPV. The same will reflect in the Form 26AS of the investor.
NRI's can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”
Short term capital gains (STCG) - Taxed as per your tax slab
Long term capital gains (LTCG) - 20% with indexation benefit
Taxation for NRI Investor:Short term capital gains (STCG) - Taxed as per your tax slab (30% TDS)
Long term capital gains (LTCG) - 10% (No indexation benefit)
Rent Income: It will be distributed as interest on debentures. It will be taxed at the applicable tax rate or the rates of the tax treaty, whichever is beneficial to the investor.
Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the asset was held (short-term vs long-term).
Short Term Capital Gain will be applicable if the Shares & Debentures are sold before 24 months and 36 months respectively. It will be taxable as short-term capital gains at applicable tax rates for the respective NRI(s).
Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 months and 36 months respectively. It will be taxed at 10%, irrespective of the quantum of gains.
*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
Please contact your dedicated investment manager for further details.
Any investment opportunity listed on the Hissedari.com platform will be owned by a SPV being a private limited company set up for this specific purpose.
However, you are welcome to seek tax and legal advice from your advisors to understand if the opportunity listed suits you. In case, you engage any legal/tax advisor, we will be happy to answer any questions that they may have.
Following this, a Drawdown Notice will be sent to you once the opportunity has 100% commitment from all interested investors
A Post which you may remit the remaining funds towards your investment.
This is followed by the Offer Letter for private placement of securities and, execution of Share Securities Subscription Agreement (SSA) with the SPV. The SPV also executes the Asset Management Agreement with Hissedari.com for which you will be executing a consent letter.
At the time of resale/liquidation of your holding in the SPV, you will be required to execute securities transfer documentation which includes a request letter for the transfer of securities, a deed of adherence to the SSA, and securities transfer forms.
All these documents shall be executed through an e-signing process complete with an audit trail and no physical copies will have to be signed. This makes your investment process completely digital, fast, transparent, and very convenient.
Hissedari.com provides each investor access to an investor dashboard to access rental agreements, tenancy details, title report, due diligence report, 3rd party NAV reports, audit reports, and any other relevant documents. The same dashboard is used to provide real time tracking of asset performance, rental payouts, financial models, etc.
Your investment shall be towards subscription of the shares and compulsorily convertible debentures of the SPV that holds the property and represents your fractional investment.
Hissedari.com will provide asset management services to the SPV and undertake accounting, secretarial, reporting, leasing, maintenance, and other operational aspects under the asset management services contract with the SPV.
Can Hissedari.com re-invest my liquidated assets on the platform with your future opportunities?
No, Hissedari.co cannot invest on your behalf. You're free to invest on your own accord.
If any lucrative opportunity comes up for selling the asset, Hissedari.com as the asset manager shall take the necessary steps to evaluate the opportunity.
After evaluation, Hissedari.com will present it to the investors in the form of an online poll to decide if the asset is to be liquidated or held. If at least 75% of the shareholders vote to sell, we will begin the process of liquidation. All related reports and documents to assist the investors in making their decision shall be provided by Hissedari.com.
Once the asset is sold, the gains (post any taxes and fees) shall be distributed amongst shareholders and remitted to the respective registered bank accounts. If shareholders vote to hold, the investment will continue as is, until the next poll where the process will be repeated
Private Sale:You can sell your fraction/holding to anyone you may know, such as friends or family. You will be required to execute the necessary transfer documents for the same.
Hissedari.com will provide you with the valuation of your holding and require assistance in setting a price once intimated.
Secondary Market (Resale):You can list your fraction/holding on Hissedari.com online dashboard at Hissedari.com recommended NAV, once an investor expresses interest we'll facilitate the transaction and give you an exit.
You will be required to execute the necessary transfer documents for the same. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.
You can sell your fraction/holding to anyone you may know, such as friends or family. You will be required to execute the necessary transfer documents for the same.
Hissedari.com will provide you with the valuation of your holding and require assistance in setting a price once intimated.
Resale Market / Secondary Market:You can list your fraction/holding on Hissedari.com online dashboard at Hissedari.com recommended NAV, once an investor expresses interest we'll facilitate the transaction and give you an exit.
You will be required to execute the necessary transfer documents for the same. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.
Whereas with Hissedari.com Investors are made shareholders of a Private Limited Company which owns the property. Hissedari.com manages the property on behalf of the SPV.
YieldsIn a REIT, the yield varies based on your entry price. With Hissedari.com, the yields are fixed.
VolatilityAs a listed product, a REIT is subject to stock market volatility which can buy out of sync with actual property value.
With Hissedari.com, Asset valuations are far more stable and only change according to ground reality.
PayoutsWith REITs, the dividend payout cycle depends on the fund. It can be monthly or bi-annually. Also, a REIT is only required to distribute a minimum of 90% of the net distributable cash flows.
With Hissedari.com Payouts are made monthly and there is a complete distribution of distributable cash flows.
Non-revenue generating assetsUp to 10% of the REIT’s investment can be in under-construction (Non-revenue generating) assets. With Hissedari.com all assets are revenue-generating.
Exiting AssetsA REIT cannot sell assets that it has owned for less than 3 years. With Hissedari.com assets can be sold at any time (post the initial lock-in period) with shareholder approval.