· Financial institution benefits from the flexibility to structure their finance
· Opportunity offers Senior Secured Debt, secured with Loan-Against-Property (LAP) lending book worth 1.5x of receivables
· Invested corpus will fund a RBI-registered financial institution, which disburses retail loans
· For investors: Min. investment is INR 15 lakhs offering 11% Internal Rate of Return (IRR)
· MYRE Capital has launched this opportunity for accredited investors via offline distribution channels
Bangalore & Delhi, February 16, 2023: To enable accredited investors to diversify their portfolio, neo-realty investment platform, MYRE Capital has today announced the launch of its latest structured debt opportunity for accredited investors. The invested corpus will go to a CRISIL rated, RBI-registered, financial institution, which is engaged in disbursing loan against property to retail investors in semi-urban and rural geographies in South India. MYRE aims to raise INR 20 crore from its investors and the entire corpus is secured by collateral cover maintained above 1.5x of receivables.
The minimum investment size for this opportunity is INR 15 lakh with an 11% Internal Rate of Return (IRR). The investment is a 4-year structured product that gives investors monthly interest returns and 25% of the principal will be repaid each year. This transaction will be fully supervised by a SEBI Registered debenture trustee.
MYRE has seen rising interest for real estate debt products with its last two structured debt opportunities closing in under 25 days. After the successful launch of those two opportunities under the Lease Rental Discounting framework in the last quarter, Loan Against Property (LAP) is the second framework launched under the structured debt vertical.
Structured debt enables businesses, enterprises, and corporates to raise non-dilutive capital whilst also enabling investors to participate in secured high yield opportunities. Traditionally, LAP has been one of the most secured forms of collateral backed lending considering relatively low GNPA & NNPA statistics.
MYRE gives investors an opportunity to participate in curated institutional grade opportunities in collaboration with leading financial institutions. Most importantly, the LAP framework provides the transparency & security of hard collaterals to the investor and the capability of better financing options for the financial institution.
Speaking on the launch of the new investment opportunity, Aryaman Vir, Founder & CEO of MYRE Capital said “Since the launch of our debt vertical last year, we have seen significant interest from investors in debt opportunities backed by real estate assets. Alternative real estate investments offer a good mix of return and safety versus other competing asset classes.
We are very excited to, hence, launch our second framework under the debt vertical which will offer accredited investors an opportunity to earn risk adjusted returns. Offering a return of 11% IRR, the investment product is secured by strong collaterals of over 1.5x of receivables. A market leader in South India, our partner financial institution has been conducting business since last 10 years, and offers Loan Against Property to retail investors.
Vir added, “We see immense appetite and potential for growth for neo-realty products in India and we aim to scale the structured debt vertical to INR 350 crores by the end of CY2023. We are working on bringing multiple products in the real estate sector for our investors to help them diversify their portfolio and create wealth. Together with Fractional ownership, we are on track to achieve an AUM of INR 1,000 Crores this year.”
