faq_myrecapital

Frequently Asked Questions

MYRE Capital, a venture by Morphogenesis, is a tech enabled platform that provides easy access, transparency, and liquidity to a curated selection of pre-leased commercial real estate assets. Each asset is selected based on stringent criteria involving predictive analytics across 150+ data points, 25 years of industry expertise, and proprietary technological solutions. MYRE Capital will enable investors to co-benefit by allowing fractional ownership to our curated asset portfolio.

You can reach us via:

a. Login to our website: www.myrecapital.com
b. Drop us an email at info@myrecapital.com
c. Drop us a WhatsApp message at +918976709289

Our hours of customer support are between 10 AM – 7 PM IST, Monday to Friday.

Some of the benefits of investing via the MYRE platform include:

1) Simple and digitally-enabled investment process for investors.
2) Low minimum investment (starting at INR 25 Lakhs) enabling access to institutional quality real estate opportunities.
3) Hassle-free real estate ownership with MYRE Capital managing operations, distributing rental yield, and facilitating exit.
4) Enhanced Liquidity Solutions via proprietary MYRE Secondary exchange (marketplace) allowing trading of fractional Real estate portfolio like a stock (coming soon).

To know more about the MYRE benefits, please reach out to us.
Fractional ownership is a model of Investment in which several unrelated parties can share in the risk, rewards and ownership of a high-value tangible asset (like real estate). In simple terms, by investing INR 25,00,000 in a INR 25,00,00,000 asset you will get the ownership of ~1% of the asset. Fractional ownership, unlike full ownership, allows customers to diversify their portfolio, access high-worth investment avenues, reduce capital constraints and hedge risks.

Commercial Real estate is a leading alternative investment asset class available to general investors. In fact, institutional investors and high net worth individuals allocate approximately over 30% of their overall portfolio to real estate. You too should consider investing in real estate due to the following reasons:

Passive income: Stable rental income secured by long term registered lease agreements with institutional grade tenants.

Return potential: Real estate has a dual return profile comprising of 8%-10% rental yields along with annual capital appreciation. Factoring in the appreciation, the opportunities listed on the MYRE platform are expected to deliver 14% - 25% IRR's.

Diversification: Investing in individual properties alone has high concentration risk and huge upfront cash outflow. As a thumb rule of investing in any asset class, it is recommended to diversify exposure across multiple investment opportunities. Via the MYRE platform, investors can diversify their real estate portfolio across different commercial assets in different cities pan India.

Tangible underlying asset: As a hard asset, real estate provides both intrinsic value and growth potential as the economy develops and demand increases.
The MYRE team is constantly working on innovative solutions to ensure optimal user experience. As part of our tech road map, we will soon be launching our Investment App along with many new exciting features!

At present this app is under Beta testing and is not available at large.
Through MYRE Capital, you would be investing in a hard real estate asset by means of an investment vehicle known as an SPV (Special Purpose Vehicle), in which all investors would be given a shareholding proportionate to the size of their investment.
'Special Purpose Vehicle' also known as an SPV is an entity/company. Such vehicles are commonly used to invest/acquire assets such as real estate, companies, etc.
No, the assets are acquired under one Special Purpose Vehicle(SPV)/entity and each investor becomes a shareholder of the same entity in proportion to the size of their investment.
Since the investment is routed through an SPV and all investors are given a shareholding in the very same SPV, all records of the investment would be filed under the ROC (Registrar of Companies) and would be compliant with the Companies Act. As per regulatory requirements, MYRE ensures that the audit and other filings are carried out in a timely manner.
Once an investor has been onboarded, all legal documentation pertaining to the property and the SPV shall be made available on the investor dashboard.
We are always on the lookout for institutional-grade real estate assets such as Office Spaces, Warehouses, Data Centers, Cold-Storage facilities, Industrial Spaces, etc.
MYRE Capital takes care of all property-related management issues, including property tax filing, tenancy management and payments, insurance, and day-to-day management on behalf of the investors.
Investments are made through bank transfers; NEFT or RTGS.
As the asset is registered as a separate entity, and MYRE simply acts as an asset manager, MYRE Capital could be replaced by another asset management firm that would continue to provide the same services as MYRE.
Distributions to investors are made on the same periodicity as is paid by the tenant.
We require the following documents to complete the KYC process:

(1) PAN Card
(2) Address proof (Aadhaar/Driving License/Passport)
(3) Cancelled cheque leaf with name printed
MYRE Capital is a technology-driven platform, and your entire investment process is end-to-end digital in nature. There is no requirement to be physically present, the investment can be made from the comfort of your own home.
MYRE uses big data analytics, predictive algorithms, and stringent financial evaluation to identify the optimal CRE properties. MYRE then negotiates the terms of the acquisition and conducts thorough legal and technical due diligence of the property. After all investment criteria are met, MYRE Capital open's the opportunity to invest on the platform.

Less than 1% of the evaluated properties meet all criteria and are listed on the MYRE platform.
Due to covid restrictions, MNC tenants and Occupiers have restricted the number of people that can visit the premises. Further, these premises are operational facilities for the tenants and hence constant visits can become a hindrance for the tenant. However, we are working on a tech solution to enable virtual tours of the premises.
Each property will be acquired in an independent SPV. Each SPV will be used to finance, manage, and own the underlying property. Fractional investors will own proportional shareholding of the SPV that will represent their investment in the opportunity and the underlying property.

MYRE Capital will serve as the manager of the SPV, property, tenant, and investors.
There is no direct assurance provided on the returns. The tenant signs a lease or license agreement which is a legally binding (registered) contract that stipulates the terms of the tenancy.

Most “assured return” schemes have been banned by SEBI, and MYRE Capital strongly advises to be wary of such offerings.
The minimum investment amount is currently INR 25,00,000. However, please refer to the property page for more details regarding the minimum investment amount for a given offering.
No, you cannot get a loan on these investments. However, MYRE is actively working on finding leverage solutions for its clients.
Yes, all our offerings have a minimum lock-in period of 1 year for all investors from the date of registration of the asset.
There are various risks associated with your fractional real estate investments but these are very much the same risks an investor runs when owning and leasing their own property. Some of the inherent risks include liquidity, tenancy, and market risk. MYRE specializes in preempting such risks and identifying opportunities in which the return profile outweighs the unmitigated risk.

Since risks are dynamic in nature and subjective to the property, please refer to the risk mitigation strategy and disclosures pertaining to the investment offering.
Myre Capital charges a 1% annual management fee to the SPV. This management fee is deducted from the monthly rentals the SPV receives and is not required to be paid separately by an investor.

MYRE also has a performance fee which is only applicable/charged at time of exit. A 20% performance fee is charged only on surplus gains made above a 12% IRR (hurdle rate). If an investor earns below 12% IRR, no performance fee is charged.
Once an investor's KYC is verified, they may invest in any property listed on the MYRE platform. To proceed with your investment investors would need to e-sign an 'Expression of Interest' document and transfer an initial token advance (5%) of their intended investment amount to an escrow account to confirm their placement in the investment opportunity. Once a property is fully funded investors would be required to transfer the remaining balance amount (95%) into the escrow as well. The funds will then be utilized for acquiring the subject property and completing its registration. All the documents pertaining to the SPV, investment opportunity, and the property will be shared with the investors.
If a property does not eventually close due to any risk arising from the due diligence, MYRE will refund the token amount to the investors without any deductions. Please refer the T&C outlined in the EOI document (Expression of Interest) for further detail.
Yes, MYRE Capital and/or associated entities principally will invest alongside investors in every offering. We strongly believe in our asset selection process and asset management capabilities. To ensure alignment of interest with investors, we believe in having 'skin in the game' for the assets we offering to our investor community. The guiding philosophy at MYRE is that we only list those opportunities on our platform that we are also investing in.
All our investments are done via an SPV which is registered and complaint with the Registrar of Companies (ROC), Companies Act, and MCA.
The returns on your portfolio are calculated based on the internal rate of return (IRR) method.

MYRE also provides detailed reporting of monthly disbursements, rental yields, and other performance metrics.
Every investment opportunity will have its own unique exit strategy and holding period. However, individual early exits have also been made possible for investors through our other two liquidation options i.e. private sale or sale through the secondary market. Investors can choose to make individual exits post their respective lock-in periods.
You can view the performance of your investment through our online dashboard. MYRE will conduct an asset valuation on the property annually and the Net Asset Value (NAV) of the property will be updated accordingly
No, there will be no management fee charged to investors for as long as the property is not tenanted.
If there is no tenant the CAM and property-tax charges will be borne by the SPV as per actual. This amount will first be taken from the contingency reserve subject to the availability of funds.
Any unforeseen expenses that arise in the property are met using the contingency reserve. If the reserves are not used, they are refunded back to the investors at the time of sale of the asset.
This is a fully managed investment that requires no involvement on your part. Myre Capital will be your manager and takes the responsibility of providing end-to -end management for all opportunities listed on our platform.
Investing with Myre Capital implies that you will be a fractional owner of the asset you invest in. The other investors in the property can be either individuals or corporations.
No, Myre cannot invest on your behalf. You're free to invest on your own accord.
MYRE provides multiple liquidity options for the fractional owners on its platform:

1. Secondary Market: We have an actively managed secondary market to facilitate secondary sales. You can list your fraction on the secondary market, once an investor expresses interest we'll facilitate the transaction and give you an exit.

2. Private Sale: Fractional owners can sell their ownership to anybody privately. MYRE will facilitate the transaction once intimated.

3. Final asset exit: Post the initial 3 years, we keep an online poll for all the shareholders in the SPV to ascertain if the fractional owners would like to sell the asset. If at least 75% of the shareholders agree to sell, MYRE will scout for optimal exit options. If shareholders agree to hold, the investment will continue as is, until the next annual poll where the process will be repeated. Refer to opportunity documents for more details regarding the opportunity specific T&C pertaining to the final exit.
Monthly distributions to investors are made in the form of 'interest' and are accordingly taxable in the hands of the investor as per his/her income tax slab rate.

The indicative 'tax deducted at source' (TDS) under the current income tax regime, on such distributions, has been reproduced below:
1) Residents - 10% (plus applicable surcharge and cess).
2) NRI - 30% (plus applicable surcharge and cess)

TDS Certificate will be issued every quarter by MYRE on behalf of the SPV. The same will reflect in the Form 26AS of the investor.

NRI's can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
Capital gains tax is attracted at the time of exit from the SPV on sale of securities of SPV (Private Limited Co). Depending on the tenure of investment it will either be classified as long-term capital gain (LTCG) or Short term Capital Gain (STCG). The benefit of indexation is available in the case of long-term capital gains for resident investors.

Taxation for Resident Investor:
Short term capital gains (STCG) - Taxed as per your tax slab
Long term capital gains (LTCG) - 20% with indexation benefit

Taxation for NRI Investor:
Short term capital gains (STCG) - Taxed as per your tax slab (30% TDS)
Long term capital gains (LTCG) - 10% (No indexation benefit)
Yes, the tenant pays GST on the rentals as applicable.
All tax documents including the Quarterly TDS certificates will be made available on your dashboard. For any other tax documentation, please reach out to your dedicated MYRE investment manager.
Your tax documents as applicable will be available on your investor dashboard.
No, the structure is effectively pass-through. Only a single level of taxation, in the hands of the investor, will be applicable on the monthly distributions.
Yes, the TDS on your distributions is paid and deposited against your PAN number and can be claimed back at the end of the year as applicable.
The rentals received by the SPV are subject to 10% TDS and are treated as business income in the books of the SPV. The rental income after deduction of expenses is passed on to the investor as interest on CCD. The interest distributed to investors is only taxable in the hands of the investor and does not attract any taxation in the SPV.
MYRE provides each investor access to an investor dashboard to access rental agreements, tenancy details, title report, due diligence report, 3rd party NAV reports, audit reports, and any other relevant documents. The same dashboard is used to provide real time tracking of asset performance, rental payouts, financial models, etc.
No. As per the current statutory framework, NRI investors can only transfer the transaction amount from a NRO account.
Transfer of foreign currency by NRIs is regulated by RBI and FEMA guidelines. Please reach out to us for more information on the same.
No. For a NRI investor, at present, our investment structure can only facilitate investments and disbursements to your NRO account. Please speak to your banker for a more detailed understanding of your specific requirements.
Under Indian income-tax law, an NRI is required to pay tax on any Indian sourced or received income. A basic exemption limit is provided under the Indian tax law. If the income in India does not exceed the basic exemption limit, the NRI will not have to pay tax in India. If the income in India exceeds the basic exemption limit, the NRI will have to pay taxes in India as per the applicable slab rates.

NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).

Please contact your dedicated MYRE investment manager for further details.
Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as TDS (Tax Deducted at Source) as applicable. In such case, a NRI can claim a refund of taxes withheld by filing a tax return in India.
A TRC is a Tax Residency Certificate provided by the country where you are currently residing. India has a Double Tax Avoidance Agreement (DTAA) with most major countries that reduce TDS to lower thresholds of 10-15% (depending on the provisions of the DTAA). However, the benefit of the reduced tax rate is only available to users who are able to produce a TRC. Please speak to your tax advisor on how you can procure a TRC for your country of residence.
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