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.
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.
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.
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.
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”).
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)
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.
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.