January 09, 2025 – Strata, India’s premium commercial real estate investment platform, today announced that the company has received the official license from the Securities and Exchange Board of India (SEBI) for its Small and Medium Real Estate Investment Trust (SM REIT), named Strata SM REIT. This milestone positions Strata as a key player in the burgeoning market for the new asset class of SM REITs in India.
Strata SM REIT will enable retail and institutional investors to invest in high-quality commercial assets in key geographies, thereby democratizing access to real estate investments. The company aims to initially launch up to six SM REIT schemes in FY26, and gradually increase it to one scheme every month.
The constitution of Strata SM REIT aligns with SEBI’s regulations aimed at bringing fractional ownership platforms under a structured investment model. This initiative enhances transparency and investor protection while providing a regulated environment for real estate investments. SM REITs were introduced by SEBI as a first-of-its-kind innovative asset class in March 2024 to encourage smaller real estate investments for commercial real estate projects with a minimum asset value of INR 50 crore, compared to INR 500 crore for REITs.
Strata Capital will be the Investment Manager for the SM REIT, with Axis Trustee appointed as the trustee.
Commenting on the company securing the SM REIT license, Sudarshan Lodha, Co-founder & CEO, Strata, said, “We are happy to announce that we have received the SM REIT license from SEBI, which marks a significant step towards our goal of making commercial real estate accessible to all investors. SM REITs open up new avenues for investment opportunities for Indian investors, with the minimum investment barrier lowered to INR 10 lakh. Over time, we foresee the SM REIT industry being as significant for India as the mutual fund industry today is.”
Strata, since its inception, has been continuously striving towards creating a strong new asset democratizing investments in high-end Commercial Real Estate. Due to these efforts, Strata has successfully proven to manage over INR 2,000+ Crore in Assets Under Management (AUM) and has won the confidence of over 3500+ active investors. Strata is backed by institutional investors like Kotak Investment Advisors, Elevation Capital, Mayfield, Gruhas Proptech, and Sabre Investments.