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Strata aims to be largest alternative investment platform in India with SM REITs license

#Taxation & Finance News#India
Last Updated : 31st May, 2024
Synopsis

Strata, India's largest commercial real estate investment platform, has applied for a Small and Medium REITs (SM REITs) license from the Securities and Exchange Board of India (SEBI). SEBI recently introduced new regulations expanding the fractional ownership model to assets over INR 50 crore. Strata will migrate eligible assets to SM REITs as it looks to achieve INR 2,000 crore in assets under management by fiscal 2025. Strata currently leads the fractional ownership sector with over INR 1,800 crore in transactions and 4 million square feet under management across major Indian cities. In line with its vision and coupled with acquiring a SM REITs license, Strata aims to be the largest alternative investment platform in India by enabling retail investors to invest in CRE assets and democratizing access through its easy-to-use online platform.

Strata, India's largest commercial real estate (CRE) investment platform, has applied for a Small and Medium REITs (SM REITs) license under the latest regulations issued by the Securities and Exchange Board of India (SEBI).


In 2023, SEBI introduced Small and Medium REITs to the fractional ownership model (FOP) for all assets over INR 50 crore. SEBI further released detailed guidelines earlier this year which expanded the scope for fractional ownership investments to include larger assets previously not feasible due to technical and legal constraints.

Strata will initiate migrating eligible assets to SM REITs as it aims to achieve a total asset under management (AUM) of INR 2000 crore by the end of FY25.

Commenting on the development, Sudarshan Lodha, Co-founder & CEO of Strata, said that Strata supports the regulator's vision to streamline fractional ownership and elevate it to mainstream investment status. Strata believes that the regulatory push will enhance credibility and investor confidence. This year their focus will be to integrate eligible assets into SM REITs to boost investor trust and developer relationships to strengthen the supply pipeline.

Strata leads the fractional ownership ecosystem in India with over INR 1,800 crore in transactions and AUM of over 4 million square feet across Mumbai, Bangalore, Pune, Hosur, Hyderabad, Chennai, Jaipur and Mehsana.

In line with its vision and coupled with acquiring a SM REITs license, Strata aims to be the largest alternative investment platform in India by enabling retail investors to invest in CRE assets and democratizing access through its easy-to-use online platform. Strata empowers global retail investors to invest in specific commercial properties of their choice in different locations while offering good yields. This will help further the development of the alternative asset class and democratize real estate investing for individual investors. Strata is backed by institutional investors including Kotak Investment Advisors, Gruhas Proptech, Sabre Investments Elevation Capital, Mayfield and PropStack.

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