Strata Delivers 13-14% ROI on Real Estate Investments

Mumbai, Feb 15 (PTI) Strata, the investment platform that offers fractional real estate ownership space, has given 13-14 per cent returns to its investors within two years.

Fractional ownership firms like Strata allow investors to own and sell fractions of pre-leased, grade-A commercial properties like office spaces, warehouses and industrial assets.

Launched in 2021 for investments, the warehouse asset -- Jaipur Opportunity -- was acquired at a cost of Rs 20.09 crore. The value appreciated 5.72 per cent annually with the final valuation at Rs 23.25 crore at the time of sale, Sudarshan Lodha, co-founder and chief executive of Strata, told PTI on Thursday.

Strata is backed by institutional investors such as Kotak Investment Advisors, Gruhas Proptech, Sabre Investments, Elevation Capital, Mayfield and Propstack.

The fractional ownership market has surpassed Rs 4,000 crore now, reflecting its potential, even though only six to seven players are there in the market, he said.

Lodha claimed that Strata is the fastest growing platform among all with Assets Under Management (AUM) of Rs 1,500 crore and aims to cross Rs 2,000 crore by the end of this fiscal.

The fractional ownership model, particularly in premium grade-A commercial properties, has gained traction due to its affordability, with investors pumping in an average of Rs 35-40 lakh while the minimum investment size in fractional investment is Rs 25 lakh, he said.

Strata claims to have over 1 lakh users.