Regulations put out by SEBI

FAQs answered by SEBI

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Investing in SM REITs carries risks, including vacancy risk and exit risk. Vacancy risk refers to the possibility that tenants may vacate properties before lease expiration, leading to temporary income loss until new tenants are found. Exit risk is the risk that a property may take longer to sell than anticipated, especially in fluctuating market conditions.

The Investment Manager’s fees are specified in the Investment Management Agreement between the Trustee and the Investment Manager. Detailed information on fees can be found in the offer document and on Strata SM REIT website.

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The assets for SM REITs are selected, acquired, managed, and sold by the Investment Manager. This manager ensures that all assets align with the trust's objectives and are managed for optimal returns.

SM REITs are launched through an initial public offering (IPO) for each new scheme. You can participate in the IPO directly through your Demat account or purchase units of previously listed SM REITs on the stock exchange. Note that SEBI and the stock exchanges may issue further guidelines and notifications as this new asset class develops.

The minimum investment in an SM REIT is Rs. 10 lakh, with additional investments made in multiples of Rs. 10 lakh.

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SEBI has established guidelines for SM REIT listings, and Strata is actively working to launch its first SM REIT to market in India. The launch will depend on the successful filing and approval of the draft offer document by SEBI.

SEBI introduced SM REIT regulations to make smaller real estate assets, valued between Rs. 50-500 crores, accessible to both retail and institutional investors. While mainboard REITs can only list assets over Rs. 500 crores, a significant market of income-generating assets valued below this threshold exists. The new SM REIT framework allows these assets to be monetized through a regulated trust structure, similar to mainboard REITs. Additionally, these regulations bring fractional ownership platforms under SEBI’s regulatory oversight.

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An SM REIT, or Small and Medium Real Estate Investment Trust, is a specialized category within the REIT framework that allows individual investors to access income-generating real estate assets like office buildings, retail centers, hotels, and hospitals, typically valued between Rs. 50 and 500 crores. SM REIT units are traded on the stock exchange and regulated by the Securities and Exchange Board of India (SEBI), similar to traditional REITs.

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REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.

REITs are globally considered to be a safe and transparent way to invest in income generating real estate and SM REITs have a focused single asset investment model that leads to c. 100 to 150 bps higher yield than traditional REITs and better overall risk adjusted returns.