<p>Fractional ownership platform Strata is well on its way to achieve the target it set for itself this fiscal year- increase its assets under management by 50% to Rs 1,500 crore. “We’ll exceed that,” said company co-founder and chief executive Sudarshan Lodha in a conversation with <em>DH</em>. </p>.<p>The proptech startup is now looking to expand to the Gulf Cooperation Council countries in the next year and a half. “ The rental yields in GCC would be similar but the advantage there is taxation,” he reasoned.</p>.<p>The realty player, which has so far raised $7.5 million in two rounds of funding, is also exploring a new set of investors. A subsequent funding round before the end of this calendar year is likely, Lodha revealed. “We’re going to be profitable in the next six months, touch break-even at least,” he added.</p>.<p>Furthermore, it is looking at new asset classes such as retail and hospitality to diversify its portfolio which currently consists of industrial facilities (35%), warehouses (25%) and offices (30%).</p>.<p>With a minimum ticket size of Rs 25 lakh, “we’re for the 1% of India, as a product,” Lodha remarked. The platform charges 1% of the asset purchase price in yearly management fees, returning an average of 11-12% in rental yields in a typical leasing period of 3-15 years.</p>.<p>Talking about expansion into tier II cities, Lodha had his reservations. He spoke about challenges such as demand by developers for partial payment in cash and limited availability of large-scale quality assets. “Also, when I want to exit this property, who do I find in these tier II markets who’ll buy such a large property,” he stressed. </p>.<p>When questioned on benefiting from incentives offered by various state governments for real estate investments, Lodha said: “Incentives don’t reach... It is not for an investor as much as it is for an end industrial operator.”</p>.<p>Commenting on the Securities and Exchange Board of India’s recent proposal for regulation of fractional ownership platforms, Lodha called it a largely laudable move. However, he sees the mandate to hold at least 15% of the total units of the MSME REIT for each scheme as a spoiler. “Regulation is always a good thing although it can slow you down initially” he noted. </p>.<p>According to Lodha, so far 2,500 - 3,000 investors have deployed their capital on the platform while a total of 70,000 - 80,000 users have signed up. “I think out of that qualified users should be about 30,000-35,000,” he added.</p>
<p>Fractional ownership platform Strata is well on its way to achieve the target it set for itself this fiscal year- increase its assets under management by 50% to Rs 1,500 crore. “We’ll exceed that,” said company co-founder and chief executive Sudarshan Lodha in a conversation with <em>DH</em>. </p>.<p>The proptech startup is now looking to expand to the Gulf Cooperation Council countries in the next year and a half. “ The rental yields in GCC would be similar but the advantage there is taxation,” he reasoned.</p>.<p>The realty player, which has so far raised $7.5 million in two rounds of funding, is also exploring a new set of investors. A subsequent funding round before the end of this calendar year is likely, Lodha revealed. “We’re going to be profitable in the next six months, touch break-even at least,” he added.</p>.<p>Furthermore, it is looking at new asset classes such as retail and hospitality to diversify its portfolio which currently consists of industrial facilities (35%), warehouses (25%) and offices (30%).</p>.<p>With a minimum ticket size of Rs 25 lakh, “we’re for the 1% of India, as a product,” Lodha remarked. The platform charges 1% of the asset purchase price in yearly management fees, returning an average of 11-12% in rental yields in a typical leasing period of 3-15 years.</p>.<p>Talking about expansion into tier II cities, Lodha had his reservations. He spoke about challenges such as demand by developers for partial payment in cash and limited availability of large-scale quality assets. “Also, when I want to exit this property, who do I find in these tier II markets who’ll buy such a large property,” he stressed. </p>.<p>When questioned on benefiting from incentives offered by various state governments for real estate investments, Lodha said: “Incentives don’t reach... It is not for an investor as much as it is for an end industrial operator.”</p>.<p>Commenting on the Securities and Exchange Board of India’s recent proposal for regulation of fractional ownership platforms, Lodha called it a largely laudable move. However, he sees the mandate to hold at least 15% of the total units of the MSME REIT for each scheme as a spoiler. “Regulation is always a good thing although it can slow you down initially” he noted. </p>.<p>According to Lodha, so far 2,500 - 3,000 investors have deployed their capital on the platform while a total of 70,000 - 80,000 users have signed up. “I think out of that qualified users should be about 30,000-35,000,” he added.</p>
