Latest news with #SMREIT
Time of India
14-05-2025
- Business
- Time of India
Sebi cautions investors as Strata SM REIT surrenders registration
NEW DELHI: Markets regulator Sebi on Wednesday cautioned investors against dealing with Strata Small and Medium Real Estate Investment Trust ( SM REIT ) as it is no longer a regulated intermediary or an SM REIT. The decision came after the markets regulator reviewed "certain legal proceedings against the promoter of a Sebi-registered SM REIT -- Strata SM REIT . The regulator said it had engaged with Strata SM REIT, its independent director, compliance and other officers and the trustee. "Based on the engagement and discussions there at, Strata SM REIT has surrendered its certificate of registration as an SM REIT and will not hold out or represent itself as a Sebi -regulated intermediary or SM REIT," the regulator said in a statement. Accordingly, the regulator advised investors to exercise caution while dealing with the entity. Sebi said Strata SM REIT has, as on date, not launched any SM REIT schemes nor migrated any pre-existing fractional real estate entities as an SM REIT scheme. Strata had registered as an SM REIT, a new asset class introduced by the Securities and Exchange Board of India (Sebi) as a sub-class within the REIT framework for assets valued between Rs 50-500 crore. Similar to REITs, SM REIT units are required to be listed on stock exchanges but with a minimum lot size of 1 unit of Rs 10 lakh. Under the framework, SM REITs are not permitted to invest in under-construction assets or land and must distribute 95 per cent of earnings as distributions to unit holders.
Hans India
14-05-2025
- Business
- Hans India
SEBI warns investors as Strata gives up SM REIT licence
Mumbai: The Securities and Exchange Board of India (Sebi) has issued a warning to investors regarding Strata, a commercial real estate platform founded by Sudarshan Lodha and Priyanka Rathore, after the company surrendered its licence as a small and medium real estate investment trust (SM REIT) due to a legal controversy. 'Pursuant to certain news reports and review of certain legal proceedings against the promoter of SM REIT, SEBI engaged with Strata SM REIT, its independent director, compliance and other officers and the trustee. After the engagement and discussions, Strata SM REIT has surrendered its certificate of registration as an SM REIT and will not hold out or represent itself as a SEBI-regulated intermediary,' SEBI said in a statement. 'This communication is being issued in the interest of investors advising them to exercise caution while dealing with the entity,' SEBI said. Strata had registered as a Small and Medium Real Estate Investment Trust (SM REIT), a new framework introduced by Sebi for fractional ownership platforms to offer real estate investment products. However, following certain concerns and discussions with Sebi, Strata has surrendered its registration. Strata received Sebi approval in January and had planned to launch six schemes during the current financial year. So far, it has not yet launched any SM REIT schemes nor migrated any pre-existing fractional real estate entities to the SM REIT framework, the SEBI statement added. The legal dispute involving SM REIT arose with a Tamil Nadu-based real estate firm engaged in acquiring and developing land for industrial and warehousing projects. According to the anticipatory bail order of the Madras High Court, a case was filed against Lodha for allegedly seeking information by impersonating as a SEBI official and creating a fake email ID under her name. However, Lodha's counsels denied the allegations and argued that as the complainant did not succeed in arbitration and other civil proceedings, it filed a 'false complaint' in order to 'arm-twist and give a criminal colour to the dispute.' 'In light of the ongoing matter, we have voluntarily surrendered our SM Reit licence without admitting or denying any wrongdoing, as a measure of abundant caution. Upon conclusion of the current litigation, we intend to apply for a fresh licence at a future date. This matter does not affect the existing investments with Everstrat,' Strata said in a statement on Wednesday.
Time of India
14-05-2025
- Business
- Time of India
Fractional ownership platform Strata surrenders SEBI registration amid legal dispute
Real estate fractional ownership platform Strata has surrendered its registration with the Securities and Exchange Board of India (SEBI) amid the ongoing legal issues involving its promoter. The capital market regulator has accepted the surrender application of Strata SM REIT while issuing a cautionary note to investors. The company had received SEBI's approval to launch its SM REIT in January. Strata's surrender of its license follows reports of a legal dispute with a Tamil Nadu-based realty developer over a warehousing asset in Hosur. The dispute has triggered investor concerns over due diligence and asset control. 'Strata SM REIT has surrendered its certificate of registration as an SM REIT and will not hold out or represent itself as a SEBI regulated intermediary or SM REIT,' SEBI said, cautioning investors to exercise discretion while dealing with the entity. The regulator stated through a release, it had reviewed certain legal proceedings against Strata's promoter and held discussions with the entity's trustee, independent director, and compliance officials before concluding the process. 'In light of the ongoing matter, we have voluntarily surrendered our SMREIT licence, without admitting or denying any wrongdoing, as a measure of abundant caution. Upon the conclusion of the current litigations, we intend to apply for a fresh licence at a future date. This matter does not affect the existing investments with Everstrat,' Strata said in a statement. Live Events According to the company, the surrender of the license does not affect existing investors or the assets of Strata, with business continuity at the Bengaluru-based firm remaining normal. Strata had previously presented itself as an early mover in the fractional real estate space, facilitating investments in commercial real estate through co-ownership models. It was also among the first to position itself for regulatory compliance through the SM REIT route after SEBI finalized the framework in March 2024. SEBI further clarified that Strata had not launched any schemes under the SM REIT framework, nor had it migrated any of its existing fractional real estate assets under the new regulatory regime. The regulator's move comes months after Strata became one of the first platforms to receive a license under the newly introduced SM REIT structure, aimed at bringing greater oversight to the rapidly growing fractional ownership market. Started in May 2019, Strata's assets under management currently stands at Rs 2,200 crore and a 3.5 million sq ft portfolio of rent-generating assets across key property markets of Mumbai, Pune, Bangalore, Hyderabad, Chennai, and Ahmedabad
The Hindu
14-05-2025
- Business
- The Hindu
SEBI warns investors of Strata SM REITS as it surrenders registration
Securities and Exchange Board of India (SEBI) warned investors of Strata SM REITS that the application to surrender registration was accepted by the market regulator. SEBI's decision follows 'certain news reports and review of certain legal proceedings against the promoter', according to a statement from SEBI. 'SEBI engaged with Strata SM REIT, its independent director, compliance and other officers and the trustee. Basis the engagement and discussions thereat, Strata SM REIT has surrendered its certificate of registration as an SM REIT and will not hold out or represent itself as a SEBI-regulated intermediary or SM REIT,' SEBI said in its release. Strata has not launched any scheme. Strata received license for SM REIT in January 2025.
Time of India
08-05-2025
- Business
- Time of India
Property Share files ₹472 crore IPO draft for second SM REIT scheme
NEW DELHI: Property Share Investment Trust, India's first registered Small and Medium Real Estate Investment Trust (SM REIT), has filed a draft document for a Rs 472 crore Initial Public Offering (IPO) of PropShare Titania , its second SM REIT scheme . The IPO comprises a fresh issue of Titania units with no Offer For Sale (OFS)component, Property Share Investment Trust said in a statement on Thursday. PropShare Titania comprises a 4,37,973 sq ft of grade A+ office space in G Corp Tech Park located in Mumbai, with ESG certifications. It is fully occupied by a diversified tenant portfolio comprising Fortune 500 companies, MNCs and blue-chip tenants including Aditya Birla Capital and Concentrix. The Trust said that tenants have occupied the building for more than nine years and have a 3.3-year weighted average lease expiry in the building. There is a 5 per cent annual rental escalation across all the tenant leave and licence agreements. The scheme offers investors a projected distribution yield of 9 per cent for FY26 and FY27, while 9.1 per cent for FY28. Proceeds from the issue are proposed to be utilised primarily for the acquisition of the asset. PropShare Titania is located on the main Ghodbunder road, Thane, which is part of the Mumbai Metropolitan Region. Thane has a large residential catchment area with strong social infrastructure. "After the success of our first scheme of SM REIT, we are excited to launch PropShare Titania. This marks another milestone in our mission in creating a transparent, liquid, and institutional-quality real estate investment platform for individual investors. In a volatile equity market environment, rent-yielding commercial assets like SM REITs are emerging as an alternative investment opportunity for investors,"Kunal Moktan, Co-founder, Property Share said. In December, Property Share Investment Trust floated Rs 353-crore IPO of PropShare Platina, its first SM REIT scheme. SM REITs are a new asset class introduced by the Securities and Exchange Board of India (Sebi) as a sub-class within the REIT framework for assets valued between Rs 50 and Rs 500 crore. Similar to REITs, SM REIT units are required to be listed on the stock exchanges but with a minimum lot size of 1 unit of Rs 10 lakh. Under the framework, SM REITs are not permitted to invest in under-construction assets or land and must distribute 95 per cent of earnings as distributions to unit holders. Kotak Mahindra Capital Company is the sole lead manager to the issue. The units are proposed to be listed on BSE.
