BHIVE plans to launch a Rs 400 crore coworking-focused CAT-2 alternative investment fund (AIF) to fuel its growth. The proposed new provide will acquire fully completed commercial real estate properties at prime locations with clear titles, occupancy certificates, and a capex of a set. Over the past year, BHIVE has solidified its position as the largest co-working operator in Bengaluru, closing transactions upwards of Rs 200 crore.

“There has been exponential growth in the number of AIFs in India. Unlike a decade ago, when offshore investors were funding India’s AIFs, the expanding pool of domestic investors is helping them grow. We see a tremendous opportunity in this segment and will go aggressive with our plans as we embark on the next growth phase of the organization,” said Sheshagiri Rao Paplikar, Founder & CEO of the BHIVE. The company has also said that it will wind up its current AIF fund, which Sandeep Gupta was managing.

This transition marks Gupta's decision to pursue new opportunities outside BHIVE. Despite his departure, BHIVE emphasizes that there will be no disruption to its investment trajectory or impact on its current portfolio., as the current AIF has not yet been operational. “Change is inherent in the investment landscape. Our team, fortified by expertise and dedication, is committed to delivering optimum results and upholding our investors' trust in us,” said Paplikar.

The new fund will offer a unique opportunity to High Net-worth Individuals (HNIs) and family-owned businesses looking to participate in the commercial real estate growth story with a minimum investment of Rs one crore. BHIVE Workspace has been aggressively expanding its footprint across Bangalore and eyeing new opportunities in other top commercial markets. It operates 25 flexible and managed office assets totaling 1.5 mn sq ft across Bangalore.

India's office markets have demonstrated remarkable resilience, maintaining a consistent level of quarterly leasing activity throughout the first two quarters of 2023, led by Tech and Flex. From an operational footprint of under 20 mn sq ft at the end of 2018, the flex segment, as of March 2023, has grown 3X in size across the top seven cities, driven by rising demand for managed space solutions from enterprises cutting across geographies and industries. The sector is poised to double its footprint over the next five years, crossing the 100 mn sq ft mark across the top seven cities by the end of 2027.