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Strata raises 140 crore for Warehouse investment opportunity amid lockdown

Separator
Strata raises 140 crore for Warehouse investment opportunity amid lockdown

CEO Insights Team, Nikhil Michael, Correspondent, CEO Insights

Strata, a tech enabled fractional investment platform for premium Commercial Real Estate (CRE), has raised Rs. 140 crore for a consortium of three grade-A warehousing asset opportunities amid the Covid-19 pandemic. Strata Avigna Warehousing I & II situated in Hosur received 100% commitment from investors within just 42 days of its launch, while the pharma warehousing asset in Bengaluru was closed within a record time of just 7 days. The consortium of assets collectively computed for a total of 0.7 million sq. ft. of warehousing space.

The assets are expected to offer investors an average rental yield anywhere between 9.5% and 10% Y-o-Y, which is amongst the highest when compared to other investment opportunities such as - mutual funds, fixed deposits and equity markets. The consortium listed by the company offers investment opportunity assets that an investor can avail via the fractional ownership model.

The latest asset listing of the firm witnessed participation from a diversified set of more than 500 investors across HNIs’, family offices, top management from fortune 500 companies, retail and institutional among others. Besides, the assets also secured tremendous traction from the NRI community and from investors across tier-II towns.

The assets offered by Strata being pre-leased properties, the investors can start enjoying rentals from the first month of investment itself. Minimum investment for the assets listed begins from Rs.25-50 lakh. The investments being in liquid one can easily sell off one's stakes whenever required.

Commenting on the development, Mr. Sudarshan Lodha, Founder, Strata, said, “We have successfully raised funds for our investment opportunities even in such
challenging times which clearly reflects the pent-up demand and high resilience of the sector and the confidence of our investors in our business model. With global supply chains diversifying away from China to India, greater penetration of e-commerce, faster shift to 3PL, and companies eyeing higher inventory levels, we foresee an approx. 30% growth in warehousing facilities in the coming years.”

“We are extremely bullish on ‘Commercial real estate’ fast emerging as a non-volatile alternative investment asset class, especially in the post-Covid era. Strata aims to bring such one-of-a-kind investment opportunities in the CRE space for the masses. By fractionalizing Commercial Real Estate (CRE) and offering it on an easy-to-use online platform, Strata aims to democratise CRE, making it accessible for a much larger investor base.” he added further.

Mr. Abhijit Verma, CEO, Avigna Space Industrial & Logistics Park said, “We are very excited about our association with Strata. Our consortium brings the best of both the worlds – an unexplored investment opportunity in warehousing backed by a robust technology platform that presents a one-of-a-kind investment opportunity.”

“Avigna is planning on developing multiple industrial and warehousing projects spread over 9 Million sqft in the next five years across 7 cities such as Bangalore, Chennai, Hyderabad, etc. We look to strengthening our association with Strata with new projects on the horizon.”

While ‘warehousing’ has been rapidly rising as a potential investment class in CRE, the trend has picked further pace during the pandemic lockdown. With supply chain reconfiguration and a drastic behavioral shift resulting in a sudden boom in e-commerce, the Indian warehousing stock is expected to see a 30% Y-o-Y growth. A host of industry factors and favourable regulatory policies such as - GST streamlining, corporate tax reduction, Make in India, National Logistics Policy, ease of doing business and boom in e-commerce among many others have been actively driving the demand for warehousing in India.

Offering access to live commercial real estate data and in-depth understanding of the commercial real estate (CRE) scenario through its investor dashboard, Strata simplifies fractional investment model empowering its investors to make financially sound and well-informed decisions.