Rudrabhishek Enterprises Limited (REPL), a leading integrated urban development and infrastructure consultancy, has officially received registration for Small and Medium Real Estate Investment Trusts (SM REITs) by the Securities and Exchange Board of India (SEBI). The approval, under the name ImpactR SM REIT, marks a significant milestone for the company as it becomes the second SM REIT in India to receive this registration following the new regulations.
SEBI first notified the regulations for SM REITs on March 8, 2024, setting out a regulatory framework aimed at streamlining Fractional Ownership Platforms (FOPs) and enabling wider participation in real estate investments. With this registration, REPL will serve as the investment manager for ImpactR SM REIT, positioning the company at the forefront of an emerging sector that is set to revolutionize real estate investments for smaller investors.
Commenting on the achievement, Pradeep Misra, CMD of REPL, said:"We are truly honoured to receive this prestigious registration from SEBI. This achievement reflects our relentless commitment to innovation and to shape India’s dynamic real estate landscape. The ImpactR SM REIT will open up structured and transparent investment opportunities, making real estate accessible to a broader base of investors. With our extensive experience in real estate and urban infrastructure, we are confident this step will create a transformative impact for our stakeholders and the industry at large. REPL has proven credential in design, development and project management of diverse real estate projects, including its marketing and turning it into a revenue generating asset."
Misra further added that the SM REITs market will steer the Real Estate Industry by virtue of its quantum and growth momentum. As per the industry reports, SM REITs market is expected to exceed Rs. 4.98 lakh crores by 2026 (CBRE Report, Sept. 2024). The potential market for the SM REITs in India is over 300 million square feet of commercial office space. Moreover, the asset types to be covered under SM REITs will spread well beyond the commercial office space and new properties will add to the already existing inventory. Since the SM REITs are within the ambit of well-regulated provisions of SEBI, this will boost the confidence of investors from all segments including the HNIs, NRIs and institutional investors. REPL is among the first two companies to get registration for SM-REITs and hence the first mover advantage will immensely work in its favor in terms of attracting interest of the developers, property owners and the investor class.
"Furthermore, the decision to register as an SM REIT aligns with India’s vision of ‘Viksit Bharat 2047’ and SEBI’s forward-looking SM REIT regulations. The real estate sector will play a pivotal role in achieving this vision, and through SM REITs, small investors will have the opportunity to invest in real estate assets beyond just tier-one cities. With SEBI's introduction of SM REITs, key stakeholders — investors, promoters, developers, and investment managers- will benefit from new avenue. SM-REITs will address multiple critical issues of real estate as asset class, such as liquidity, entry barrier, transactional costs and portfolio diversification.”
"Receiving the SM REIT registration is just the beginning. We are excited to announce that we will soon be launching our first IPO under ImpactR SM REIT. Moving forward, we plan to expand beyond traditional residential and commercial assets, introducing diverse asset classes such as warehousing, hospitals, hotels, and industrial spaces. This is a significant step for REPL, our investors, and the entire Indian real estate market, and we are excited about the opportunities it will bring in the near future."
With this registration, REPL is poised to expand its footprint in the real estate investment sector, leveraging its experience and industry partnerships to drive the growth of the ImpactR SM REIT and elevate investor confidence.
