Strata Secures SEBI Approval for Small and Medium REITs, Plans Six Schemes for FY26

2025-01-10 02:52:50

Strata to Launch Up to Six SM REIT Schemes in FY26, Aiming for Monthly Rollouts Thereafter

Strata, a real estate fractional ownership platform, has received approval from the Securities and Exchange Board of India (SEBI) to launch small and medium-scale real estate investment trusts (SM REITs). This marks the fourth such license issued by SEBI, following those granted to Property Share, REPL, and Emberstone. Notably, Property Share has already launched its first scheme, Propshare Platina.

Under SEBI regulations, SM REITs can house assets valued between ₹50 crore and ₹500 crore, with each investment opportunity structured as a separate scheme. Unlike traditional REITs, SM REITs are restricted from investing in under-construction properties.

“SM REITs offer Indian investors new investment opportunities with a lower minimum investment threshold of ₹10 lakh. We anticipate that the SM REIT industry will eventually hold the same significance for India as the mutual fund industry does today,” said Sudarshan Lodha, co-founder and CEO of Strata.

Strata plans to launch up to six SM REIT schemes in FY26, with the goal of introducing one new scheme every month thereafter. Strata Capital will serve as the investment manager for these REITs, with Axis Trustee overseeing trusteeship services.

The platform currently manages assets worth approximately ₹2,000 crore and is backed by prominent investors, including Kotak Investment Advisors and Elevation Capital.