GENERAL
Any Indian citizen, Hindu Undivided Family (HUF), Companies, and NRIs can invest with Aswin Business corporation.
NRI investors can invest through an NRO or NRE Account or from a normal bank account in India. Your returns and sale proceeds, however, will be credited to your NRO account.
INVESTMENT
The minimum investment is Rs. 10 lakhs. Please note that this is subject to change.
We believe in 100% transparency. All property documents, rental agreements, tenancy details, title report, due diligence report, etc. will be available from Aswin Business corporation.
No, Aswin Business corporation does not guarantee any returns. While rental yields on most opportunities listed on the platform are known in advance, the risk that the yield and expected gains will not be realised, remains. Our presentations, webinars, and discussions only indicate projected returns. We advise potential investors to be wary of any scheme which provides guaranteed returns.
Your investments are yours and are absolutely secure regardless of what happens to Aswin Business corporation. Here’s how- 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.
PRE INVESTMENT
The first thing you will need is some basic documents .
A copy of your PAN Card.
Address Proof such as Aadhar, Driver’s Licence, or Passport.
Bank statement or a cancelled cheque leaf with the name printed.
NRI investors need to provide an NRE or NRO account number. Non-Individual entities will be required to submit additional documents. Once verified, then you can now invest in any open opportunity listed on the platform.. . You will receive all necessary property related documents for your perusal and scrutiny. If you decide to move forward and block your investment, you will need to transfer the initial 10% token advance to company account 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 to the company account.You will be allocated equity shares and compulsorily convertible debentures (CCDs) in the Private Limited Company The company will then proceed to purchase the asset.
In the unlikely event that a property on our platform doesn’t complete its funding target, any funds that have been committed by investors will be reimbursed to the verified bank account
Once an initial investment or token advance is paid, a termination fee shall apply for any withdrawals. The fee will be as per the terms mentioned in the Expression of Interest
Yes, there is an initial 3-year lock-in from the time the property is registered. You are free to sell your holdings thereafter. However, if you have an investment horizon of fewer than 5 years, it is recommended to not invest with Aswin Business corporation or in real estate in general.
Other than an initial acquisition fee which varies depending on the opportunity, we charge the following –
A 1% annual management fee that is charged on the monthly payout.
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 realises 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.
For opportunities closed after 5th July 2024, resale transactions will elicit a 2% facilitation fee on the actual resale.
The facilitation fee is calculated as follows –
Facilitation fee = (Actual resale value agreed upon with the buyer – Performance fees)*2% The facilitation fee will not be charged in the following cases:
If the seller has pre-arranged a buyer and only requires Aswin Business corporation to execute the transaction.
If the resale is for tax optimisation purposes (For e.g. transfer to immediate family members or to an HUF at the original purchase price).
When the entire asset is being sold.
In such cases, only a nominal legal fee and Stamp Duty of ₹1430 will be levied.
No, there will be no management fee charged to investors for as long as the property is not tenanted
POST INVESTMENT
Your investment is completed as soon as the opportunity is fully funded and private placement of your investment is done in the company. Aswin Business corporation generally has a time frame of 60 days to ensure that the property receives complete funding.
The return on your investment is in the form of interest on debentures and is paid monthly. The interest/coupon rate of the debentures you hold is a function of the rents generated and interest earned on the security deposit. The return is transferred to your bank account on or before the 10th working day of every month subject to the receipt of rents from the tenant.
Aswin Business corporation will take care of all aspects related to the asset
You can exit your investment once the initial 3 year lock-in period is complete. This can be done in two different ways.
Asset Sale: If a lucrative opportunity for selling the asset is available, Aswin Business corporation as the asset manager shall take the necessary steps to evaluate the opportunity. After evaluation, Aswin Business corporation 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 Aswin Business corporation. 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. Aswin Business corporation will provide you with the valuation of your holding should you require assistance in setting a price.
