Strata to apply for SM REITs license to broaden fractional ownership platform; aims to raise total fund of ₹2000 crore

Strata will initiate the migration of its eligible assets to SM REITs, as it aims to achieve a total assets under management of ₹2000 crore by the end of FY25

Published on: May 17, 2024, 16:53:32 IST

By HT News Desk

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Strata, India’s commercial real estate (CRE) investment platform, plans to apply for the SM REITs license by the end of this month 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 assets under management (AUM) of ₹2000 crore by the end of FY25, the company said in a statement.

In 2023, SEBI had announced an introduction of Small and Medium REITs into the fractional ownership model (FOP), for all assets of over ₹50 crore.

Also Read: 520 lakh sq ft SM REIT-ready office space provides monetization opportunity of ₹67,000 to 71,000 crore: ICRA

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.

Also Read: Have a crore to invest in a second home in Goa? Here’s what you should know

“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,” Sudarshan Lodha, co-founder and CEO, Strata.

Also Read: SEBI notifies SM REITs: Move to regulate fractional ownership industry and safeguard investors’ interests

Strata is leading the fractional ownership ecosystem in the country with over ₹1,800 crore in transactions and AUM of over 4 million sq. ft. across Mumbai, Bengaluru, Pune, Hosur, Hyderabad, Chennai, Jaipur and Mehsana, the company said.

Strata is backed by institutional investors like Kotak Investment Advisors, Gruhas Proptech, Sabre Investments Elevation Capital, Mayfield and PropStack.

Also Read: Sebi notifies small and medium Real Estate Investment Trusts

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