Grip enables equity investments in special purpose vehicles (SPVs) which hold commercial properties across key Indian metropolitan areas and property types (office, retail and warehousing properties). Investments in such SPVs are enabled through a SEBI-registered Alternative Investment Fund (AIF), which has partnered with Grip. The AIF ensures that funds to be invested in each SPV are raised separately. Accordingly, you can always be assured that the funds you invest will only be used towards making investments in the SPV holding the commercial property you chose.
Please note that while Grip may or may not be investing (or leading investments as the lead investor) in the AIF’s schemes, Grip does not advise, encourage, or discourage its users to invest or not invest in any particular AIF scheme.
Grip has partnered with leading commercial property fractionalisation platforms (“CRE Platforms”) to provide you these investment opportunities. For each opportunity, the relevant CRE Platform identifies the commercial properties, completes the fitouts and finds marquee tenants for leasing the properties owned by the SPVs. Additionally, the CRE Platform also undertakes the incorporation and day-to-day management of the SPVs which hold and lease the properties. An asset management agreement is executed between the SPV and the CRE Platform for facilitating the management of the commercial properties, whereby the CRE Platform handles the accounting, secretarial, reporting, leasing, maintenance and other operational aspects.
Grip does not play any role in identification or management of the SPV or the underlying commercial properties held by such SPVs.
Grip does not carry out any due diligence on the commercial property opportunities listed on its platform. However, the CRE Platform which Grip has partnered with follows a rigorous deal discovery mechanism, which involves carrying out due diligence on the underlying commercial properties, financial modelling, extensive data mining and market analysis to shortlist the commercial property opportunities for you.
For each commercial property, the following documents are typically prepared: (a) financia, tax, technical, and legal due diligence reports; (b) title due diligence report; and (c) property valuation reports. Please note that this is an indicative list.
Commercial property opportunities on Grip’s platform are executed through a SEBI registered alternative investment fund (AIF) partner of Grip.
In a typical opportunity on an existing CRE Platform, which is structured in the form of a SPV holding the underlying property, an exit from the sale of the underlying property is subject to a lucrative opportunity for selling/disposing the asset becoming available. Once the exit opportunity becomes available, the CRE Platform as the asset manager presents the opportunity to all of the SPV’s investors to decide if the asset is to be liquidated or held. If at least 50% or 75% (as the case may be for each CRE Platform) of the shareholders of the SPV vote to sell, the liquidation process is initiated. Given that the commercial property investment opportunities on Grip’s platform are facilitated through an AIF, the Investment Manager of the AIF will solely decide on behalf of all AIF scheme investors.
Once the asset is sold, the gains (post any taxes and fees) made will be distributed amongst shareholders (including the AIF). The AIF will remit the funds to the respective registered bank accounts of unit holders of its scheme in the relevant proportion of investment.
