Strata, India’s largest commercial real estate (CRE) investment platform, has filed an application for the SM REITs license under the latest regulations issued by Securities and Exchanges Board of India (SEBI). Strata will also initiate the migration of its eligible assets to SM REITs, as it aims to achieve a total AUM of INR 2000 crore by the end of FY25.
In 2023, SEBI had announced an introduction of Small and Medium REITs into the fractional ownership model (FOP), for all assets of over INR 50 crore. Further to this, the regulator released a detailed framework in early 2024. This regulation has widened the scope for fractional ownership investment, including very large assets that were otherwise not possible due to technical and legal constraints.
Commenting on this development, Sudarshan Lodha, Co-founder & CEO, Strata, said, “As the leading FOP in the nation, Strata embraces the regulator's vision to streamline fractional ownership, elevating it to mainstream investment status. We are thrilled by the recent growth of this sector, and we believe that this regulatory push will enhance the credibility and investor confidence. Our focus this year is to integrate eligible assets into SM REITs, bolstering investor trust and developer relationships to fortify our supply pipeline.”
Strata is leading the fractional ownership ecosystem in the country with over INR 1,800 crore in transactions and AUM of over 4 million sq. ft. across Mumbai, Bangalore, Pune, Hosur, Hyderabad, Chennai, Jaipur and Mehsana.
In keeping with its vision and coupled with the move to acquire a SM REITs license, Strata aims to be the largest alternative investment platform in the country for retail investors by enabling them to invest in CRE assets, by democratising assets and by offering it on an easy-to-use online platform. Through its tech-enabled platform, Strata empowers retail investors across the globe to invest in specific commercial properties in a particular location of their choice whilst offering good yields. Strata is backed by institutional investors like Kotak Investment Advisors, Gruhas Proptech, Sabre Investments Elevation Capital, Mayfield and PropStack.
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