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MYRE Capital launches ‘Lease-Contract Discounting’ opportunities

MYRE capital is India’s first neo-realty investment platform. Its parent company is Morphogenesis, a globally acclaimed architecture and urban design firm established in 1996. In October this year MYRE Capital raised Rs 70 crore for its commercial property Vaishnavi Tech Park in Bengaluru. The asset received funds from Indians and NRIs and was oversubscribed by 30 percent. The company currently manages assets worth Rs 200 crore. With its new vertical, it aims to increase its portfolio to Rs 350 crore by the next financial year.

The new investment vertical has been modelled after the globally popular ‘lease rental discounting’ concept wherein tenures as kept below the lock-in period for subtenants to secure returns for investors on a priority basis. Monthly rentals are collected in an Escrow account and the first disbursement is made to the investors. The capital collected is then handed over to managed leasing operators to invest into fitted-out offices secured by long-term contracts with MNCs and blue-chip tenants. Operators, through leasing, further grow the capital initially offered by investors. For operators the opportunity allows for non-dilutive growth of capital with future rental receivables and other repayment guarantee schemes.

For their current offering, MYRE Capital will operate the vertical offline with the intention to transition to online over the next quarter. To further safeguard an investor’s interest and mitigate risk, the company will make it mandatory for operators to provide an overarching guarantee which means that if due to any reason the funds in the escrow are deemed insufficient to cover principal + interest payment to investors, the operator will be obliged to cover the difference within the stipulated time frame.

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