DEMYSTIFYING SM REITS
Investment route: SPV
Size: INR 50 crores
Type of property: Both Residential and Commercial
Allocation: Can only invest in completed projects
Min. Unitholders: 200
Min. Publicholding: 25% of the issue
Min. investment : INR 10 lakh
Distribution of cash flows: 95%
Duration: Quarterly
But investment in the same has often been regarded as capital intensive and requiring considerable market knowledge. Not every investor has the appetite or knowledge for such an investment. This resulted in the emergence of Fractional Ownership Platforms (FOPS) that allow retail investors to jointly own a piece of real estate asset at a fraction of the actual cost.
While this alternate asset class garnered a significant interest among investors, the absence of set regulations resulted in lack of transparency and questions whether such investments are safe. In order to regulate FOPS, SEBI recently notified amendments to the REIT regulations and introduced a framework for Small and Medium Real Estate Investment Trusts (SM REITs).
WHAT ARE SM REITS?: SM REITs are specialized real estate investment trusts that differ from conventional REITS in their scale and focus and hence are more lucrative. While the exisiting REITs primarily invest in large-scale commercial properties, such as office buildings and shopping malls with a cap of INR 500 crore, SM REITS concentrate on smaller and medium-sized properties with lower value. These are allowed to issue their units with asset value of at least INR 50 crore, and have at least 200 investors to start a fund. With a SM REITs, one can invest in real estate assets with a minimum amount of INR 10 lakh.
Denne historien er fra April 2024-utgaven av Entrepreneur magazine.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 2024-utgaven av Entrepreneur magazine.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Chords of Success
For Saahil Goel, the deep-rooted passion for playing the guitar dates back to his high school days. Influenced by legends like Pink Floyd, Led Zeppelin, and the Pakistani band Strings, his musical journey mirrors his leadership style-balancing focus, discipline, and a collaborative spirit. Goel feels that playing guitar has enhanced his ability to balance focus and teamwork as a founder of an eCommerce shipping start-up.
IS YOUR RENT TOO DAMN HIGH?
Many small business owners struggle with their rents. Here's what to do.
HOW TO BOUNCE BACK FROM A BAD REVIEW
A one-star review can hurt your ego - and your business. But it's possible to prevent (and remedy!) this scary scenario.
HOW TO HIRE FOR THE FUTURE
Small businesses are struggling to find quality labor. So flip the conversation: Show workers how your business will set them up for opportunity.
You Can Hire Like Netflix
The streaming platform built an incredible team with a strategy called “talent density.” But you don’t need to be a tech giant to do it.
Speedy Growth Killed My Startup
We seemed to be rocking it - lots of press, major partnerships. Then we learned the harsh consequences of overlooking our customers.
Three Pivots to $100 Million
How do you find a working business model? Do it like Rowan-a brand that reinvented itself many times before finally piercing the ear-piercing market.
What Goals Actually Matter?
Some benchmarks are more important than others so what should you really care about? We asked six founders for their hardest-won lessons.
'Only the Strongest Are Going to Survive'
Brian Lee cofounded companies like LegalZoom and ShoeDazzle-and he believes a lot of conventional business wisdom is backward. Sure, it's harder to raise capital. But it's actually cheaper than ever to start a company.
HOW TRUST SAVED KFC
The former CEO of Yum! Brands explains how he turned around a struggling KFC-and the important lesson it offers for anyone in franchising.
