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
How To Ask Family For Money
Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.
Data Breach Drama: When Trust Turns Costly In A Digital Age
Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?
THE TERRAIN TAMER
Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.
THE INTELLIGENT READS
Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.
THE CURSE OF GROWING TOO FAST
FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"
Give Yourself the Gift of Time
Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
