 "hBits aims to list first SM REITs by Q3FY25, applies for licence with Sebi")
Mumbai-based fractional ownership firm hBits announced its plans to launch its first SM REIT (small-medium real estate investment trust) in the third quarter of the financial year 2025, according to a company statement. The firm has already applied for an SM REITs licence with the Securities and Exchange Board of India (Sebi).
The company stated that this strategic move is part of hBits’ commitment to democratising access to commercial real estate investments for retail investors across India. With its entry into 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.
Shiv Parekh, founder and chief executive officer of hBits, said, “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.”
hBits has recently expanded its portfolio in Pune. With this expansion, hBits aims to increase its total assets under management (AUM) to Rs 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 Rs 365 crore.
hBits’ SM REITs offerings would deliver regular rental income, potential capital appreciation, and liquidity through the secondary market. The firm caters to premium office spaces, warehouses, and data centres, among other sectors.
The latest policy on SM REITs introduced 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 well-positioned to leverage this regulatory framework, thereby enhancing the investment appeal for its stakeholders,” according to the company.