Strata Receives SEBI Licence to Launch SM REITs

Real estate fractional ownership platform Strata has officially received a licence from the Securities and Exchange Board of India (SEBI) to launch small and medium-scale real estate investment trusts (SM REITs). This marks a significant milestone for the platform in expanding its investment offerings.

Strata’s SEBI licence is the fourth granted by the capital market regulator for SM REITs. The previous recipients include Property Share, REPL, and Emberstone. Notably, Property Share has already listed its first scheme, Propshare Platina, under this category.

Regulations Governing SM REITs

Under existing regulations, SM REITs can hold assets valued between Rs 50 crore and Rs 500 crore. Each investment opportunity will be presented as a separate scheme. Unlike traditional REITs, SM REITs are not permitted to invest in under-construction properties.

Investment Accessibility and Future Outlook

Strata’s entry into SM REITs aims to democratize real estate investments for Indian investors by lowering the minimum investment barrier to Rs 10 lakh. According to Sudarshan Lodha, co-founder and CEO of Strata, this move is expected to make the SM REIT industry as pivotal to India’s investment landscape as the mutual fund industry is today.

Strata plans to launch up to six schemes in FY26, with intentions to introduce a new scheme every month thereafter. Strata Capital will serve as the investment manager, and Axis Trustee will handle trusteeship services for the SM REITs.

Strong Investor Backing and Assets Under Management

Strata currently manages around Rs 2,000 crore in assets and has garnered support from prominent investors, including Kotak Investment Advisors and Elevation Capital, among others. This backing underscores the platform’s potential to transform the real estate investment sector in India.

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