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Any Indian citizen, Hindu Undivided Family (HUF), Companies, and NRIs can invest with Strata.

NRI investors can invest through an NRO or NRE Account or from a normal bank account in India.

Your returns and sale proceeds, however, will be credited to your NRO account.

At Strata, the security of our platform and the privacy of all your data is an utmost priority. Our platform is built keeping the best-in-class security and privacy features in mind.

All your data is hosted on secure cloud networks and all sensitive client data is encrypted and stored with 256-bit SHA encryption.

The minimum investment is Rs. 25 lakhs. Please note that this is subject to change.

We believe in 100% transparency. All property documents, rental agreements, tenancy details, title report, due diligence report, etc. will be available through the Investor dashboard.

No, Strata does not guarantee any returns. While rental yields on most opportunities listed on the platform are known in advance, the risk that the yield and expected gains will not be realised, remains.

Our presentations, webinars, and discussions only indicate projected returns. We advise potential investors to be wary of any scheme which provides guaranteed returns.

Your investments are yours and are absolutely secure regardless of what happens to Strata.

Here’s how-

Your investment is in the form of equity shares and compulsorily convertible debentures in a Private Limited Company, incorporated for the sole purpose of acquiring and owning the asset.

By virtue of holding equity shares in the SPV, you in turn own the asset.

The SPV is bound to comply with statutory requirements such as holding general meetings, filing returns, etc., that are undertaken by third-party consultants. Due to this structure, the ultimate decision-making power lies with the investors alone.

Thus even if Strata is not functional, your ownership and control of the asset remain secure.

You can create your profile with verified KYC detail on Steadyincome and choose the property you are interested provided by Strata.

Once your KYC and investment details are verified by Strata platform, then your Virtual Account will be created and you can now invest in any open opportunity listed on the platform..

To do so, all you need to do is click on the ‘Invest Now’ button and confirm your investment details.

You will receive all necessary property and SPV-related documents for your perusal and scrutiny.

If you decide to move forward and block your investment, you will need to e-sign a binding Expression of Interest (EOI) and transfer the initial 10% token advance to your virtual account, which you will find on your dashboard.

Once 100% commitment is received from interested investors, the opportunity is considered to be fully funded.

You will then be required to transfer the remaining amount into your virtual account.

Your investment amount will then be routed through an escrow mechanism to the share subscription accounts and ultimately, to the current account of the SPV.

You will be allocated equity shares and compulsorily convertible debentures (CCDs) in the Private Limited Company

The SPV will then proceed to purchase the asset.

In the unlikely event that a property on our platform doesn't complete its funding target, any funds that have been committed by investors will be reimbursed to the verified bank account.

No, there is no need to visit the property in person. All required documentation will be signed digitally through a reputed digital signature provider.

Once an initial investment or token advance is paid, a termination fee shall apply for any withdrawals. The fee will be as per the terms mentioned in the Expression of Interest.

Yes, there is an initial 1-year lock-in from the time the property is registered. You are free to sell your holdings thereafter.

However, if you have an investment horizon of fewer than 5 years, it is recommended to not invest with Strata or in real estate in general.

Other than an initial acquisition fee which varies depending on the opportunity, we charge the following -

• A 1% annual management fee that is charged on the monthly payout.

• During exit, a performance fee of 20% on the gains above a hurdle rate of 10% IRR will be charged.

  For example, let us take a scenario where a sale of property happens after 5 years. On a property value of 25,00,000 lakh, gains calculated at 10% IRR after 5 years would be ~Rs. 13,27,500.(Sale Value + Rentals-Cost of Investment)

  If the investor realises gains on the property of Rs. 14,00,000 (Sale Value + Rentals - Cost of Investment) we would charge 20% on Rs. 72,500 (14,00,000-13,27,500) i.e. Rs 14,500.

• For opportunities closed after 1st May 2023, resale transactions will elicit a 2% facilitation fee on the actual resale.

  The facilitation fee is calculated as follows -

  Facilitation fee = (Actual resale value agreed upon with the buyer - Performance fees)*2%

  The facilitation fee will not be charged in the following cases:

  • If the seller has pre-arranged a buyer and only requires Strata to execute the transaction.
  • If the resale is for tax optimisation purposes (For e.g. transfer to immediate family members or to an HUF at the original purchase price).
  • When the entire asset is being sold.

  In such cases, only a nominal legal fee and Stamp Duty of ₹1430 will be levied.

No, there will be no management fee charged to investors for as long as the property is not tenanted.

Your investment is completed as soon as the opportunity is fully funded and private placement of your investment is done in the SPV.

Strata generally has a time frame of 60 days to ensure that the property receives complete funding.

The return on your investment is in the form of interest on debentures and is paid monthly.

The interest/coupon rate of the debentures you hold is a function of the rents generated and interest earned on the security deposit.

The return is transferred to your bank account on or before the 10th working day of every month subject to the receipt of rents from the tenant.

Strata will take care of all aspects related to the asset.

You can view the performance of your investment through our online dashboard. Note that the Net Asset Value (NAV) of the property will be updated on a half-yearly basis.

You can exit your investment once the initial 1 year lock-in period is complete. This can be done in three different ways.

Asset Sale:

If a lucrative opportunity for selling the asset is available, Strata as the asset manager shall take the necessary steps to evaluate the opportunity.

After evaluation, Strata will present it to the investors in the form of an online poll to decide if the asset is to be liquidated or held.

If at least 75% of the shareholders vote to sell, we will begin the process of liquidation. All related reports and documents to assist the investors in making their decision shall be provided by Strata.

Once the asset is sold, the gains (post any taxes and fees) shall be distributed amongst shareholders and remitted to the respective registered bank accounts.

If shareholders vote to hold, the investment will continue as is, until the next poll where the process will be repeated.

Private Sale:

You can sell your fraction/holding to anyone you may know, such as friends or family. You will be required to execute the necessary transfer documents for the same.

Strata will provide you with the valuation of your holding should you require assistance in setting a price.

Resale Market:

Using Strata’s online dashboard, you can list your fraction/holding on Strata's resale market at Strata's recommended NAV.

You will be required to execute the necessary transfer documents for the same. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.

For Indian residents, you will be paying taxes on rental payouts and on capital appreciation.

Rents: Rents received from the property are distributed as interest on debentures. It is taxable in the hands of the investors under “Income from Other Sources” at the applicable tax slab.

Capital Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the shares and debentures were held (short-term vs long-term).

Short-term Capital Gain will be applicable if the shares and debentures are sold before 24 and 36 months respectively This will be taxed at the rate applicable to the investor.

Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 and 36 months respectively. It will be taxed at 20%, irrespective of the quantum of gains.

The benefit of indexation may be explored in the case of long-term capital gains. (Holding Period > 2 years for shares and 3 years for Debentures).

Under Indian income-tax law, an NRI is required to pay tax on any income earned or sourced in India. If the income in India exceeds the basic exemption limit, the NRI will have to pay taxes in India as per the applicable slab rates.

Rent Income: It will be distributed as interest on debentures. It will be taxed at the applicable tax rate or the rates of the tax treaty, whichever is beneficial to the investor.

Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the asset was held (short-term vs long-term).

Short Term Capital Gain will be applicable if the Shares & Debentures are sold before 24 months and 36 months respectively. It will be taxable as short-term capital gains at applicable tax rates for the respective NRI(s).

Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 months and 36 months respectively. It will be taxed at 10%, irrespective of the quantum of gains.

NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax residency Certificate.

Yes. The SPV deducts a 10% TDS before remitting returns to Resident Indians and 20.8% for NRI Investors.

Resident Indians can submit Form 15G/15H and NRI’s* can submit TRC for reduced TDS.

NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax Residency Certificate (“TRC”).

The transfer of foreign currency by NRIs is regulated by extant RBI and FEMA guidelines.

For each asset listed on the Strata Platform, a Special Purpose Vehicle (SPV) is created in which funds are raised to purchase, own and manage the property.

Your investment shall be towards subscription of the shares and compulsorily convertible debentures of the SPV that holds the property and represents your fractional investment.

Strata will provide asset management services to the SPV and undertake accounting, secretarial, reporting, leasing, maintenance, and other operational aspects under the asset management services contract with the SPV.

A Special Purpose Vehicle is an entity incorporated/created under the law, being a Partnership firm, LLP, a private company, etc., for a specific lawful purpose.

Any investment opportunity listed on the Strata platform will be owned by an SPV being a private limited company set up for this specific purpose.

Strata undertakes the legal due diligence of the property before it is purchased by the SPV. All investment and property-related legal processes are handled by Strata.

However, you are welcome to seek tax and legal advice from your advisors to understand if the opportunity listed is suited for you. Should you engage any legal/tax advisor, we will be happy to answer any questions that they may have.

To begin with, you will be required to sign an Expression of Interest to confirm your commitment and remit 10% of your investment amount.

Following this, a Drawdown Notice will be sent to you once the opportunity has 100% commitment from all interested investors

A Post which you may remit the remaining funds towards your investment.

This is followed by the Offer Letter for private placement of securities and, execution of Share Securities Subscription Agreement (SSA) with the SPV. The SPV also executes the Asset Management Agreement with Strata for which you will be executing a consent letter.

At the time of resale/liquidation of your holding in the SPV, you will be required to execute securities transfer documentation which includes a request letter for the transfer of securities, a deed of adherence to the SSA, and securities transfer forms.

All these documents shall be executed through an e-signing process complete with an audit trail and no physical copies will have to be signed. This makes your investment process completely digital, fast, transparent, and very convenient.

Strata has an experienced team that performs thorough technical and legal due diligence before listing any property on our platform. We engage reputed Tier-I law firms to conduct due diligence on the property title.

Yes. you can view all the asset-related documents including the Lease/Rental/Tenancy Agreement/ Deed or Leave & Licence Agreement uploaded on the investor’s respective dashboards.