It may be noted that Aurum PropTech has recently acquired the assets and technology platform from MYRE Capital and launched Aurum WiseX.
In an exclusive interview with Sanjeev Sinha, Mr Aryaman talks about the latest trends in and future growth prospects of commercial real estate, and shares his business outlook. Excerpts:
What are the latest trends in commercial real estate?
In 2023, commercial real estate is being shaped by several key trends. Data is increasingly critical in the industry, with advanced digital technologies providing accelerated insights and faster execution. A JLL Future of Work Survey found that 56% of CRE leaders are already using or planning to introduce data science and statistical modeling by year-end to enable more informed decisions and faster response to market changes.
Sustainability and social responsibility are also gaining focus, as consumers and employees seek quality green spaces, safety, security, and local community connections. Reimagining central business districts as connected communities is thus becoming increasingly important, with 79% of CEOs in EY 2022 survey indicating that they’re adjusting global operations or supply chains to promote sustainability. To tackle emerging complexities in the commercial real estate industry, redefined partnerships are critical. Organizations are forming strategic alliances with governments, lenders, insurers, occupiers, nonprofits, and innovators to enable the transition to a low-carbon, sustainable, and equitable world.
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Commercial real estate in 2023 is undergoing significant changes driven by data-driven decision making, sustainability and social responsibility, and redefined partnerships. These trends present an exciting time for the industry, and it’s important to embrace change to create a better future for ourselves and the world at large. By doing so, we can help shape a more sustainable and equitable future for our industry and the communities we serve.
How is the commercial real estate sector likely to evolve in 2023, and what growth prospects do you foresee?
India’s commercial real estate market is expected to grow at a CAGR of 21.20% between 2023 and 2028, according to a report by Research & Markets. India’s young population provides a large pool of talented professionals at a lower cost, making it a preferred destination for business outsourcing and IT services. Office leasing comprises the majority of commercial real estate property, driving the growth of the sector. The pandemic has further accelerated the growth of India’s commercial real estate sector due to the backlog created by China’s global policies and the spike in the demand for IT services.
India’s supportive regulatory environment and lower rental costs make it easier for companies to set up their operations in the country. For example, average rental cost of real estate in India is US$1.23/ sq ft per month, which is much lower than the average rental cost of property in the US which is US$8/sq.ft/month. The combination of a young and talented workforce, supportive regulatory environment, and affordable rental costs make India an attractive destination for companies looking to set up their operations in the country. Overall, the Indian commercial real estate sector is expected to continue its growth trajectory in the coming years.
What are the different types of structured debt options available for customers who are interested in Commercial Real Estate (CRE) and Lease Rental Discounting (LRD) from YieldWiseX, and what innovative frameworks are provided?
Structured debt investments are attractive options for investors seeking steady income, diversification, risk-adjusted returns, flexibility, and professional management. Businesses opt for structured debt options for flexibility in repayment, collateralization, and structuring, especially when conventional financing is inadequate or for large capital needs.
At YieldwiseX, we specialize in structured finance and have a deep understanding of the various frameworks available, including lease rental discounting, loan against property, and mortgage-backed securities. We can provide businesses with tailored solutions that meet their specific financing needs.
In our meticulous approach to collateralization and structuring, we consider fixed assets, future receivables, balance sheet analysis, and often even take personal guarantees to ensure careful management of the repayment process and offer customers a flexible and tailored financing option.
YieldWiseX is an expert in this field and committed to innovation, which makes us a valuable partner for businesses seeking structured finance solutions that meet their unique requirements. We have identified several opportunities for new mortgage-backed securities and loan against property framework and are soon launching on the platform.
In what ways can the acquisition of MYRE Capital platform by Aurum PropTech contribute to the expansion of commercial real estate, and what potential benefits might it bring to both areas?
In just 2.5 years of operating MYRE Capital, we were able to democratize the commercial real estate investment space in India and manage 250+ crore of investments. We are looking to achieve even greater success with our real estate investment platform, and that’s why we opted for acquisition by Aurum Proptech.
By joining forces with Aurum Proptech, we are now well-positioned to achieve our Vision 2.0 goals of setting up and operating multiple cutting-edge investment platforms, becoming the largest global Neo-Realty investment platform from India, and facilitating over 1B USD of investments into commercial real estate.
Through this acquisition, we can leverage Aurum Proptech’s expertise and resources to expand our reach, diversify our offerings, and build stronger relationships with investors and other key players in the real estate industry. At the same time, we continue to prioritize customer satisfaction and maintain our 100% record of on-time returns on investments, ensuring that our users have a positive experience on our platform and helping to drive continued growth and success.
Overall, the acquisition by Aurum Proptech is a strategic move that positions us for long-term success and enables us to achieve our Vision 2.0 goals with greater speed and efficiency.
How does YieldWiseX plan to leverage technology to provide risk-adjusted investment products of institutional grade for its expanding customer base? What is the extent of the focus on technology in this strategy?
As a company, we place a significant emphasis on technology, recognizing its pivotal role in our operations. We integrate it into every aspect of our business, from the initial screening process for properties to the evaluation of our clients’ financials. This allows us to streamline our operations and provide our users with a high level of service.
To ensure the quality of properties listed on our platform, we conduct an extensive due diligence process based on over 150+ stringent data points, including advanced technology tools. This includes a thorough review of the property’s location, features, amenities, micro-market trends, rent escalation trends, profile of other tenants, leasing terms, and infrastructure availability in the vicinity.
For evaluating the financials and balance sheets of our clients, we rely on a tech-oriented approach that enables us to analyze complex financial data quickly and accurately. Our backend operations are fully automated and supported by technology, allowing for the smooth and efficient management of all transactions. This means our investors receive their receipts on a monthly basis without any delays or errors.
In conclusion, by embracing technology, we can ensure that our operations remain efficient, reliable, and scalable, both now and in the future. With a vast user base, relying on manual operations would be impractical and unsustainable.