Aurum PropTech Breaks New Ground: SEBI Greenlights India’s First SM REIT

Image Source: Aurum PropTech

Aurum PropTech Ltd has received regulatory approval from the Securities and Exchange Board of India (SEBI) to list India's first Small and Medium Real Estate Investment Trust (SM REIT) to the market, a first in India's retail real estate investment.

Key Highlights:

- The SM REIT, AMSA SM REIT Investment Trust, places Aurum in the enviable position of being the first listed Indian company to be SEBI registered under this new structure.

- AMSA aims to democratize access to institutional-quality real estate by offering structured, income-focused investment products to retail investors.
- The trust will invest in A-grade commercial real estate with big rental yields, following SEBI's SM REIT guidelines to the letter.

Strategic Significance:

- This support enables fractional ownership platforms to operate in a regulated environment, thereby enhancing investor confidence and transparency.

- AMSA will leverage Aurum's technology-driven platform to offer AI-driven solutions for marketing real estate, engaging investors, asset management, and underwriting.

Operational Impact:

- The SM REIT will target assets between ₹50 crore and ₹500 crore with a minimum of 200 unitholders to have mass participation.

- Shareholders should expect quarterly returns of net cash flows, a minimum of 95 percent of rental income to the trust and 100 percent of residuals to unitholders.

Forward Outlook:

- AMSA is weighing up the robust pipeline of completed commercial properties and is looking to set new benchmarks in governance, yield performance, and investor experience. - Supported by SEBI, Aurum PropTech is uniquely positioned to drive India's next real estate investment revolution.

Sources: Business Standard, Moneycontrol, Aurum PropTech Blog, SEBI Official Website