Strata, a prominent player in India’s commercial real estate (CRE) investment sector, has applied for a Small and Medium Real Estate Investment Trusts (SM REITs) license under the latest guidelines from the Securities and Exchange Board of India (SEBI). With this move, Strata plans to transfer its eligible assets to SM REITs, with the goal of reaching an assets under management (AUM) total of ₹2000 crore by the end of the fiscal year 2025.
SEBI’s recent regulatory changes have broadened the scope for fractional ownership, enabling the inclusion of larger assets which were previously restricted by various technical and legal limitations. In 2023, SEBI introduced the concept of SM REITs to cater to fractional ownership of assets valued over ₹50 crore. The comprehensive framework for SM REITs, issued in early 2024, has clarified operational and structural guidelines, providing a more defined pathway for investment platforms like Strata.
Strata’s decision to transition its eligible assets into SM REITs is poised to enhance its portfolio and solidify its market presence. The company has already achieved significant milestones in the fractional ownership market, with transactions exceeding ₹1,800 crore and managing more than 4 million square feet of commercial real estate across major Indian cities, including Mumbai, Bengaluru, and Hyderabad.
With institutional support from Kotak Investment Advisors and Gruhas Proptech, Strata is well-equipped to leverage the opportunities presented by the SM REITs framework. This strategic initiative is set to boost Strata’s operational capacity and demonstrates its commitment to nurturing strong relationships with investors and developers, which is vital for the continued expansion of its asset base.
This development signifies a notable shift in India’s real estate investment landscape, where regulatory advancements and innovative platforms are redefining commercial real estate investments. SEBI’s introduction of SM REITs underscores the dynamic evolution of the real estate sector in India, offering a promising outlook for investors and developers alike.