Unlock Your Potential with SM REIT Investments

Join us on an exciting journey of growth and wealth creation. At Town Home Realties, we believe that real estate is not just about properties; it’s about creating thriving communities. Our SM REIT investment opportunities are designed to help you build lasting wealth and secure your financial future. With expert market insights and innovative strategies, your investment can truly thrive.

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What is SM REIT?

Under Indian law, Small and Medium Real Estate Investment Trusts (SM REITs) are a newly established investment vehicle regulated by the Securities and Exchange Board of India (SEBI) since March 2024. They are designed to democratize access to institutional-grade real estate assets for retail investors by allowing fractional ownership of income-generating properties.

Why invest in SM REIT?

http://sebi.gov.in

Definition of SM REIT.

SM REIT is a trust that pools funds from investors to invest in a portfolio of completed and revenue-generating real estate assets, such as office buildings, malls, hotels, and hospitals. Each scheme under an SM REIT must have an asset size between ₹50 crore and ₹500 crore and a minimum of 200 investors per scheme. Unlike traditional REITs, SM REITs can launch multiple schemes, each with its own set of unitholders and assets, similar to mutual funds

💡 Benefits of Investing in SM REITs

  1. Accessibility: Lower investment thresholds make it easier for retail investors to participate in high-quality real estate investments.

  2. Regular Income: Investors receive dividends from rental income generated by the underlying property.

  3. Professional Management: Properties are managed by experienced professionals, ensuring efficient operations and maintenance.

  4. Diversification: Investing in a portfolio of properties provides diversification, reducing risk compared to investing in a single property.

  5. Transparency and Regulation: Being regulated by SEBI, SM REITs offer a transparent investment structure with mandatory disclosures and compliance requirements.

  6. 🧾 Regulatory Safeguards

    • No Related Party Transactions: SM REITs are prohibited from entering into transactions with related parties, ensuring arms-length dealings.

    • Segregation of Assets: Each scheme’s assets and liabilities are ring-fenced, protecting investors’ interests in individual schemes.

    • Mandatory Disclosures: SM REITs must provide regular disclosures on financials, asset performance, and other material information to investors

Frquently Ask Queshtions

Item #1. What are the key benefits of SM REIT investing in India?

SM REITs are designed for retail participation, with a lower minimum investment amount than traditional REITs.Investors can start with a fraction of the cost of owning an entire commercial property.SM REITs are a modern, regulated, and accessible investment vehicle for Indian retail investors. They combine the benefits of real estate ownership—such as regular income and capital appreciation—with the liquidity, transparency, and diversification of financial instruments. For those seeking exposure to real estate without the complexities of direct ownership, SM REITs offer a smart and scalable solution.

Under the Securities and Exchange Board of India (SEBI) regulations, the minimum investment amount for Small and Medium Real Estate Investment Trusts (SM REITs) is set at 3 lakh to  ₹10 lakh per investor. This investment threshold is significantly lower than the capital required for direct ownership of commercial properties, making SM REITs a more accessible option for retail investors seeking exposure to income-generating real estate assets.

Our dedicated investor relations team is always available to assist you with:

  • Investment queries

  • Portfolio analysis

  • Regulatory clarifications

  • Exit/liquidity options

We ensure that your investment journey is smooth, secure, and profitable.

SM REITs can be a rewarding but moderately risky investment, offering passive income and real estate exposure without the burden of direct ownership. However, they are not risk-free. A prudent investor should evaluate the sponsor’s credibility, portfolio quality, and financial disclosures before committing capital..

 

Investing in SM REITs (Small and Medium Real Estate Investment Trusts) in India is subject to capital gains tax based on the holding period and type of gain (short-term or long-term). Here’s a clear breakdown:

SM REITs are listed on stock exchanges, so their units are treated like listed equity shares for taxation purposes.

Short-Term Capital Gains (STCG)

  • Applicable when: SM REIT units are sold within 36 months (3 years) of purchase.

  • Tax rate: 15% (plus applicable surcharge and cess) if listed and traded on a recognized stock exchange.

  • Taxable amount: Sale Price – Purchase Price – Transaction Charges (like brokerage, STT, etc.)

Long-Term Capital Gains (LTCG)

  • Applicable when: SM REIT units are sold after 36 months of holding.

  • Tax rate:

    • 10% on gains exceeding ₹1 lakh in a financial year (without indexation benefit).

  • Taxable amount: Sale Price – Purchase Price – Transaction Charges
    (Only the portion of LTCG exceeding ₹1 lakh is taxed.)

Dividend Income from SM REITs

  • Taxable in the hands of the investor, as “Income from Other Sources.”

  • Taxed at the applicable slab rate of the investor (since REITs pass through most of their income).

  • If the dividend is paid out of income that has already been taxed at the SPV (Special Purpose Vehicle) level, it is exempt; otherwise, it is taxable.

We don’t charge any brokerage or service fee other than the SM REIT share buying prices.

  • Always check the offering document for specific lock-in clauses and liquidity terms.

  • Monitor NAVs and market prices before selling to ensure you’re exiting at a favorable valuation.

  • Consider the tax implications of early exit (STCG vs LTCG).

  • Once payment and documentation are done, share delivery typically happens within T+1

What Our Investors Say

Hear from Our Happy Investors

At Town Home Realties, we’re proud of the success stories our investors share. These testimonials highlight how our SM REIT investments have transformed their financial futures. Join a community that’s seeing real benefits from smart real estate investments!

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