Strata receives SEBI nod to launch small and medium REITs, plans to launch six schemes in FY26

Strata has around Rs 2,000 crore in assets under management

Real estate fractional ownership platform Strata has announced that it has 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 is the fourth such licence granted by the capital market regulator, after Property Share, REPL, and Emberstone, of which Property Share has listed its first scheme- Propshare Platina.

According to existing regulations, assets valued between Rs 50 crore to Rs 500 crore can be housed under SM REITs, with each investment opportunity being floated as a separate scheme. Unlike regular REITs, SM REITs are not allowed to invest in under-construction property.

"SM REITs open up new avenues for investment opportunities for Indian investors, with the minimum investment barrier lowered to Rs 10 lakh. Over time, we foresee the SM REIT industry being as significant for India as the mutual fund industry today is," said Sudarshan Lodha, co-founder and chief executive officer of Strata.

In a statement, Strata said that it is planning to launch upto six schemes in FY26, after which it plans to launch a scheme every month. Strata Capital will be the investment manager for the SM REIT, while Axis Trustee has been appointed for trusteeship services. Strata has around Rs 2,000 crore in assets under management, and is backed by a number of marquee investors, such as Kotak Investment Advisors, Elevation Capital, and others.