On March 8th, 2024, SEBI notified the SEBI (Real Estate Investment Trusts) (Amendment)
Regulations, 2024, thereby introducing Small & Medium Real Estate Investment Trusts (SM REITs).
SEBI's pioneering SM REIT framework has shattered barriers, democratizing access to premium
real estate assets once exclusive to institutional investors. With lowered investment thresholds and
standardized requirements, retail investors can now diversify into this coveted asset class. Unlock
the potential of SM REITs: With scheme sizes from INR 50-500 crores, a minimum of 200 unit
holders per scheme, and assets owned through SPV Companies, SM REITs offer an inclusive and
dynamic approach to real estate investment.
KCAPL's Role in SM REITs
At KCAPL, we're dedicated to ensuring our clients maximize their returns from SM REIT
investments.
Our consulting services include:
• Investment manager (IM) (incorporation/conversion)
• Appointment of Trustee
• Process of formation of Trust
• Incorporation of Trust
• Trustee entering into investment management agreement with investment manager
• Registering Trust with SEBI - formation of SM REIT
• Investment manager - appointing merchant banker
• Identifying the real estate assets SM REIT proposes to acquire or invest in.
• Draft scheme offer document file with SEBI for issue of Units
• Issue subscribed by investors
• Unitholders- minimum 200 investors (exclude Investment manager, its associates and
related party)
• Minimum price of each unit - Rs. 10 lakhs
• The size of the asset of a particular scheme of SM REIT shall be at least 50 crores
• Accumulation of funds
• Buying or investing in real estate assets with the funds accumulated by the Scheme of
SM REIT
• Scheme of SM REIT / SPV - ways of investing the funds of SM REIT
• Distribution of net distributable cash flow of SPV - minimum 95 %
• Distribution of net distributable cash flow of Scheme of SM REIT - 100 %
Buckle up and get ready to embark on a real estate investment journey like never before – one
that promises to redefine your wealth-building potential.