hBits Seeks SM REITs License, Aims to list its first SM REITs by Q3FY25

Mumbai / August 27, 2024:  hBits, a fractional ownership platform in India, has applied for Small and Medium REITs (SM REITs) license with the Securities and Exchange Board of India (SEBI). The company expects to receive the license in the next couple of months and plans to launch its inaugural SM REIT offering in the third quarter of the current financial year, it said in a press statement. 

By entering the SM REITs space, hBits aims to enhance transparency, governance, and investor confidence in fractional ownership of commercial real estate. Upon the launch of its first SM REITs, the platform will also subsequently migrate its existing properties into SM REITs over the next few quarters, the statement added.

“We are thrilled to announce our application for the SM REITs license, a significant step forward for hBits and our investors,” said Shiv Parekh, Founder and CEO of hBits. 

“We believe in the tremendous potential that commercial real estate has to offer to Indians and through SM REITs we aim to provide our investors with diversified, lucrative and regulated investment opportunities,” he added.

hBits has recently launched multiple opportunities in Pune. With this expansion, hBits aims to increase its total assets under management (AUM) to ₹10,000 crore over the next five years. Currently, the company manages a portfolio of 14 properties across key cities, with an AUM of over ₹365 crore.

hBits’ SM REITs offerings will provide investors with the benefits of regular rental income, potential capital appreciation, and liquidity through the secondary market. The company is focused on acquiring properties in premium locations across the country, targeting sectors such as premium office spaces, warehouses, and data centres among others.

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The introduction of SM REITs regulations by SEBI is expected to create a more structured and secure environment for fractional ownership investments. By migrating existing assets and acquiring new ones, hBits is poised to capitalize on this regulatory framework, enhancing the overall investment proposition for its stakeholders.