Any Indian citizen or an NRI can invest with us. Investments from institutions are also accepted. Before proceeding with your investment, it is imperative that all standard regulations including extant foreign exchange laws are followed. Please write to Wenscap at contact@Wenscap.com for any related queries.
Note for NRI investors: NRI investors can only invest through an NRO or NRE Account or from a normal savings bank account in India, however, your interest distributions and sale proceeds will be credited to your NRO account. Please speak to your banker/financial advisor for a more detailed understanding of your specific requirements.
Copies of the following documents will be required as part of the KYC process -
Wenscap does not guarantee any returns on the assets listed on our platform. The current investment opportunity “The Capital “is expected to generate an average rental yield of approximately 10.72% and an overall targeted returns to be within 16% to 18% IRR over varied periods.
Once your account is KYC verified, you can invest among the available opportunities listed on our platform. You can transfer the initial token advance 1 % of your investment amount to the SPV bank Account.
Once 100% commitment is received from interested investors, the opportunity is said to be fully funded, you will be required to transfer the remaining amount into the SPV account within 5 working days.
Please contact your dedicated WENSCAP investment manager for further details.
The returns on your portfolio are calculated based on the internal rate of return (IRR) method.
WENSCAP will share monthly disbursements net of monthly expenses once the tenant is onboarded , which is expected once the project is completed.
Yes, for the current investment opportunity there is an initial of 24 months or the actual project completion period as the lock-in from the fund closure. You are free to sell your holdings thereafter.
The lock-in would be 3 years of “persons resident outside India” which includes foreign institutional investors and foreign nationals residing abroad.
Generally, a commercial real estate asset will require over 5-7 years to have good appreciation based on various parameters. While an early exit is possible through our liquidity options, this could adversely affect the total return on your investment.
Investors can choose to sell investments (after an initial 24-month lock-in period) through Wenscap Resale Market.
Once the initial 24-month lock-in period is complete, you can exit your investment in four different ways.
Asset Sale: If a lucrative opportunity for selling/disposing the asset is available, Wenscap as the asset manager shall take necessary steps to evaluate the same and present to the investors an online poll during the AGM 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 Wenscap.
Once the asset is sold, the gains (post any taxes and fees) made shall be distributed amongst shareholders and remitted to your 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 may 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.
Resale Market: Using online dashboard, you can list your fraction/holding on Wenscap resale market. You will be required to execute the necessary transfer documents for the same. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.
Wenscap charges an annual management fee up to 1% of the property value. The fee is a monthly charge on the gross rent and is designed to cover the management of the SPV and its assets for commercial projects.
Wenscap, being your Asset Manager, will take care of all aspects regarding the asset.
You will become a partner in the SPV which is a Limited Liability Partnership firm. You will enjoy rights proportionate to your investment amount.
No, there will be no management fee charged to investors for as long as the property is not tenanted.
You can view the performance of your investment through our online dashboard. WENSCAP will conduct an asset valuation on the property annually and will be updated accordingly
We believe in 100% transparency in reporting. All property related documents, rental agreements, tenancy details, title report, due diligence report, etc. will be always available through our dashboard. Monthly financial statements of rents are also made available through the dashboard.
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
Yes. The SPV deducts a 10% TDS before remitting returns to Resident Indians and 20.8% for NRI Investors monthly. Resident Indians can submit Form 15G/15H and NRI’s* can submit TRC for reduced TDS.
*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
For residents, as per the current income tax regulations, you will be paying two kinds of taxes:
Rents: Rents received from the property are distributed as interest on debentures. It is taxable in the hands of the investors under “Income from Other Sources” at the applicable tax rate. Wenscap will deduct 10% TDS which can be claimed by the investor once the income tax returns are filed.
Capital Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the shares and debentures were held(short-term vs long-term).
Short-term Capital: Gain will be applicable if the shares and debentures are sold before 24 and 36 months respectively This will be taxed at the rate applicable for the investor.
Long-term capital: Gain will be applicable if the Shares & Debentures are held for more than 24 and 36 months respectively. It will be taxed at 20%, irrespective of the quantum of gains. The benefit of indexation may be explored in the case of long-term capital gains. (Holding Period > 2 years for shares and 3 years for Debentures).
Under Indian income-tax law, an NRI is required to pay tax on any income earned or sourced 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.
Rent Income: It will be distributed as interest on debentures. It will be taxed at the applicable tax rate or the rates of the tax treaty, whichever is beneficial to the investor.
Capital Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the asset was held (short-term vs long-term).
Short Term Capital: Gain will be applicable if the Shares & Debentures are sold before 24 months and 36 months respectively. It will be taxable as short-term capital gains at applicable tax rates for the respective NRI(s)
Long-term capital: Gain will be applicable if the Shares & Debentures are held for more than 24 months and 36 months respectively. It will be taxed at 10%, irrespective of the quantum of gains.
NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
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 WENSCAP 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”).
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.
For each asset listed on the Wenscap Platform, a Special Purpose Vehicle (SPV) is created in which funds are raised to purchase, own and manage the property. Wenscap will provide asset management services to the SPV and undertake accounting, secretarial, reporting, leasing, maintenance and other operational aspects under the asset management services contract with the SPV.
WENSCAP provides each investor access to an investor dashboard to access rental agreements, tenancy details, title report, due diligence report, audit reports, and any other relevant documents. The same dashboard is used to provide real time tracking of asset performance, rental pay-outs, financial models, etc.
Your ownership structure in the assets is designed in a way that the ownership is not dependent on WENSCAP.
You will be made the partner in SPV LLP that shall own the commercial real estate asset that you have invested in . This ensures that the compliances pertaining to your investment in the SPV are filed/made from time to time with the necessary government authorities. The title documents executed and registered in favour of the said SPV shall be stored as a public document in government databases and records. Your investment remains absolutely secure regardless of what happens to WENSCAP.
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. WENSCAP specializes in pre-empting such risks and identifying opportunities in which the return profile outweighs the unmitigated risk.
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 proportionate of the SPV that will represent their investment in the opportunity and the underlying property.
WENSCAP Capital will serve as the manager of the SPV, property, tenant, and investors
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