Representative imageHBITS, a platform for partial investment in commercial real estate, has obtained a license from the Securities and Exchange Board of India (SEBI) to launch its small and medium Real Estate Investment Trust (SM REIT).
The company plans to launch its first SM Reit IPO by June. Over the next few weeks, HBITs will also transfer its existing portfolio of commercial properties into the SM Reit structure.
“India's commercial real estate sector has seen a strong and consistent growth, especially in office places. With SM REIT rules now, the route is clear to create a transparent, structured and investor -friendly platform for partial ownership in commercial real estate,” said HBITS founder and CEO Shiv Parekh.
HBITs are actively looking to achieve new commercial properties in prominent locations, including India's top 10 cities, aiming to obtain assets under Management (AUM) of Rs 2,000 crore by March 2026.
According to Parekh, the company aims to provide retail investors access to high yield, premium-grade assets in India's top commercial hub, which offer frequent income and long-term money creation opportunities.
HBITs have more than 100,000 registered users and 16 major commercial property. The company recently raised Rs 40 crore in its series A round, which is part of the Thackersi Group, which further strengthens its financial base.
The Mumbai-based company allows investment starting from Rs 10 lakh in commercial properties of Grade-A, with an average fare yield up to 10% and up to 18% with internal rates of returns (IRS).
SM REIT is a newly introduced investment vehicle in India, regulated by the Capital Market Regulator. Unlike traditional REITs, which focus on large -scale commercial real estate, SM REITs enable small, partial ownership of income -generating properties, making real estate investment more accessible to retail investors. Ends ends
SM REITs provide the benefits of regular rental income, potential capital appreciation and increase in liquidity through secondary market mechanisms. The SM REIT structure is expected to be expected to significantly increase transparency, compliance, and investors confidence in the emerging asset classes of the ownership of partial commercial real estate.
