FAQ
Frequently asked questions
General questions
Pre Investment
Post Investment
Strata vs REIT

Fractional ownership in real estate is a term used to describe when a number of investors join together to invest in a real estate asset so that all of them can benefit from a share of the income that the asset generates, and any appreciation in the value of the property.

Any Indian citizen or an NRI can invest, with us. We also accept investments from institutions. Just make sure you comply with regulations before you proceed with your investment. Feel free to contact us if you require any further clarification or assistance.

Note for NRI investors: NRI investors can only invest through an NRO Account or from a normal savings bank account in India. We cannot accept payments from NRE Account or in FDI.

You can join the platform by clicking on the 'Sign up' or 'Invest now' buttons on our website. Once all your details are filled out and your KYC is verified, you can start your investment journey with us.

We require copies of the following documentation.

  1). Address Proof (Aadhar/Driver's License/Passport).

  2). 6 month bank statement or cancelled cheque leaf with the name printed.

  3). PAN Card.

  4). Your 16 digit demat account number.

Absolutely! You can invest in as many properties as you like and build a diversified portfolio across various opportunities and locations.

Before we list a property on our platform, our team run various financial models and data analytics to identify properties that can ideally maximise returns for our investors.

Strata is an online investment platform and your ownership structure is designed in such a way that the ownership is not dependent on anyone. Your ownership, governance and compliance records are stored in public databases and in government records. Your investment remains absolutely secure.

Yes, as with any real estate transaction, owning a property through Strata carries inherent risks and potential loss of capital.

All legal due diligence is taken care of by us on your behalf and there is no need to engage with an attorney or lawyer. If you do wish to engage a legal resource, we will be happy to answer any questions they may have.

We take the security of our platform and privacy of all your data extremely seriously. Therefore, we have built a system with best-in-class security and privacy features.

All your data is hosted on secure cloud networks and all sensitive client data is encrypted and stored with 256 bit SHA encryption. Also, we will never share your data with any third party. For more details, please refer to our privacy policy.

The minimum investment is as per the lowest unit cost of the property and varies from property to property. Please refer to the individual property pages to find the minimum investment price.

If for some reason a property on our platform doesn't complete its funding target, any funds that have been committed by investors will be reimbursed to the registered bank account.

Investments are structured as private limited companies. For each investment, a Specific Purpose Vehicle (SPV) is created in which funds are raised to own and manage the property. As an investor you will own shares of the SPV holding the property and represents your investment. We assume responsibility for oversight, reporting, and major decisions on behalf of the investors.

Property investments are owned by a private limited company designated as a 'Specific Purpose Vehicle', or SPV. Any investments on a particular property will be owned by a SPV set-up for this specific purpose.

Once your account is KYC verified, you can invest in any property listed on our platform wherein you'll need to e-sign a binding Expression of Interest and transfer 10% of your investment amount to your virtual account (which we will create for this purpose) to block your investment.

Once a property has been fully funded, you will be required to transfer the remaining amount into your virtual account. Your amount will then be transferred to the SPV account and the SPV will proceed to purchase the property.

The ownership and property management agreement will be shared with you and once you approve and execute it, the investment is finalized along with details of your shareholding in the SPV.

No you will not need to travel. All required documentation will be signed digitally via DocuSign.

Once an initial investment or token advance is paid, it cannot be refunded as per the Expression of Interest which the investor has signed. The amount will be forfeited unless the property is not fully funded in which case we reimburse the sum back to the investor's bank account.

You will sign an Expression of Interest, Ownership Agreement, and a Property Management Agreement with Strata. All these documents will only require a digital signature and no physical copies will have to be sent. This makes the process faster, transparent, and convenient.

We charge an annual property management fee of 1% and a performance fee of 20% above a hurdle rate of 8% on capital appreciation at the time of sale of the asset.

The management fee is a monthly charge on gross rent and is designed to cover the management of the SPV and its assets whereas the profit share/performance fee is payable on exit. This has been designed to reward investors should the investment offered by us prove to be successful for the investor.

For e.g. If a property is bought for Rs. 1,00,000 and the investor makes Rs. 1,08,000 at the time of sale, we do not charge any performance fees as we believe we were not able to deliver returns greater than the risk free rate.

If for the same property the investor makes Rs. 1,15,000 we charge a 20% fee on Rs.7,000 (1,15,000 - 1,08,000) i.e., Rs. 1,400. This way our fees are aligned with investor returns.

Strata has a very experienced team who perform a through technical and legal due diligence before buying any property. We get all our title reports signed by a Tier 1 law firm.

Yes. The Lease/Rental Agreement, Due Diligence Report, Title opinion and the Sale Deed are shared with the Investors. It is also be accessible the investor dashboard.

We believe in 100% transparency in reporting. All property documents, rental agreements, tenancy details, title report etc will be available through our dashboard at all times. Detailed monthly financials are also made available through the dashboard.

No we do not guarantee any returns. On the contrary, we advise potential investors to be wary of any scheme which provides guaranteed returns.

There are various risks associated with your fractional investments such as liquidity, tenant, and market risk.

We do not guarantee any returns on the assets listed on our platform. However, our expected returns is 14-20% IRR over a period of 5 years.

Yes there is an initial 6 month lock-in from the time the property is funded. You are free to sell your holdings post that.

Your investment is completed as soon as the property is fully funded by other co-investors. We have a time frame of 60 days in which to ensure that the property receives complete funding.

Rental yeild and interest on the security deposit are transferred to your bank account on or before the 10th day of each month.

Yes. We deduct a 10% TDS before remitting returns to you on a monthly basis.

Properties will have an investment lifespan of 3-5 years to allow for the asset to appreciate. While an early exit is possible through our liquidity options, this could adversely affect the total return on your investment.

Investors can choose to sell investments (after an initial 6 month lock-in period) through our Resale Market.

Once the initial 6-month lock-in period is complete, you can exit your investment in four different ways.

Asset Sale

Once an investment is 3 years old, Strata will hold an annual online poll among shareholders to decide if the asset is to be liquidated or held. If atleast 75% of the shareholders vote to sell, we will begin the process of liquidation. Once the asset is sold, you will be credited your gains (post any taxes and fees) on your registered bank account. If shareholders vote to hold, the investment will continue as is, until the next annual poll where the process will be repeated.

Private Sale

You are free to sell your fraction/holding to anyone you may know, such as friends or family. You only need to inform us so that we can update our records and help you with the share transfer. While Strata provides an NAV (Net Asset Value), you can choose to sell at any price you wish.

Resale Market

Using your online dashboard, you can list your fraction/holding on Strata's resale market at Strata's recommended NAV. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.

Dedicated Resale Window

Strata will open an annual resale window during which investors can put up their fraction/holding for sale at a discount. During this period no new investments are offered on our platform and hence focus is solely on the resale platform. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.

Strata takes care of all aspects regarding the asset.

You'll own Equity Shares and Debentures of the SPV which owns the property. These will be in demat form.

As per the current income tax regulations, your returns will be taxed in exactly the same manner as if you had purchased the property on your own. You will be paying two kinds of taxes:

Rents: Rents received from the property is distributed as interest on debentures which is taxable directly in the hands of the investors (post 10% withholding tax which can be claimed by the investor at the end of the year).

Capital Gains: The profit on sale of commercial property is considered as capital gains. The same shall be long-term, if the property was held for more than 24 months and will be taxed at 20%, irrespective of the quantum of gains.

However, if the property was sold before 24 months had passed, the same becomes taxable as short-term capital gains and is taxed as normal income. Please consult your financial advisor for more details.

You can view the performance of your investment through our online dashboard. Please note that the Net Asset Value (NAV) of the property will be updated on a half yearly basis.

No, there will be no management fee charged to investors for as long as the property is not tenanted.

The Management fee covers the costs for collection of rents, payouts to investors, TDS filing, GST filing, facilitating property tax payments, compliances of the SPV, sending monthly MIS of the SPV and insurance.

Any unforeseen expenses that arise in the property are met using the contingency reserve. If the reserves are not used, they are refunded back to the investors at the time of sale.

In a REIT or a Real Estate fund, the investor do not have exposure to directly owning a real estate property. The investor invests in a fund that has fund managers who decide how the capital is deployed and managed.

On the other hand, Strata is a platform that connects you directly with investment opportunities in commercial real estate, allowing you to invest and own fractional ownership in properties of your choice and reap it's yield and capital appreciation over time.

A fractional-investing platform gives it's investors direct access to a range of real estate investments across the country, whereas in a traditional real estate model, the high capital requirement limits one's investment appetite and creates a large concentration of risk.

REIT Strata
It is a highly regulated trust fund which limits the expansion of innovative growth models. It is a self-regulated, enabling expansion of the investment structures for investor requirements from balanced to income generating assets.
REIT hold the SPV and manages the property. Investors are co-owners of the SPV against the investment amount whereas Strata manages the property as per an Agreement between Strata and the SPV.
With a Minimum asset requirement of 500 Cr, the REIT has a limited number of properties that it can undertake. There is no minimum value that a property has to meet. Instead the property is selected after rigorous due diligence and ascertaining the returns.
The returns are highly volatile due to active trading on the stock exchange. The returns are more stable.
At least 80% of the assets should be completed and must be revenue-generating properties. All properties must be completed and revenue-generating.
It can invest in at least 2 projects with not more than 60% of the value of assets invested in one project A continuous pipeline of prime properties are offered giving multiple options to investors to invest.
REIT must distribute not less than 90% of the net distributable cash flows, subject to applicable laws, to its investors. There is complete distribution of distributable cash flows, which is calculated post deducting statutory fees and taxes along with our asset management fees.
Full valuation to be carried out at least once a year and half-yearly updation of the same has to be carried out. Continuous monitoring of valuation of properties through data analytics.