[rajathv8]

Originally Posted by ninjatalli

Edit: Did you mean "Prestige Tech Forest" (which is on the lakebed of Varathur lake). There are some ~70 1-star reviews of that project.

I think he meant "Tech Forest" which is clearly in the lake area and is quite a disappointing sight. From the looks of it, Prestige Sommerville too appears to be on potentially dubious land.
Fun fact: The Varthur sewage.. oops.. I mean lake water overflow channel makes its way into TN and becomes "Ponnaiayr river" after Sampangi dam. It continues and flows into Krishnagiri reservoir. I had visited this place few months back but never imagined it to be a recipient of BLR sewage/lake water. There are several fields along the banks of the stream being irrigated using the water. Sad state of affairs all over

[ajmat]

Originally Posted by Abbas

I searched the thread but did not get any recent reviews. Can anyone share their experiences with such investment.

The risk ofcourse is that it seems that it is not regulated. And you are just getting a peice of paper instead of physical property.

However, the rental yeild seems to be good. Can someone please shed some light on this?

The screensaver before reality!

• No regulation
• Too many external factors - tenants, landlord etc
• Do you know what is the property and are the papers in place?
• Where is the property location?
• Rental, unless there are huge lock-ins
• What happens if the tenant does not pay or gets you swallowed up in a controversy? There is a Nirav Modi showroom which was to open and has been sealed for over 4 years (24L /month rental!)
  
  I dabbled in fractional ownership on pre-project financing in 2014 expecting a return in 2017. It is 2024 and still no joy - property is nearing completion after long delays.
  
  I saw Cafe Day Square advertised in Strata. The building has been sold and leased to TableSpace so the question is whether the building owner is selling fractional ownership or it is misrepresentation.
  
  A friend of mine tried fractional ownership in a major commercial property in near ITPL. The returns were not that great as the builder took their share in admin costs, and control is heavily assymmetric,

[green_ninja]

Originally Posted by Abbas

Hello Guys,

Has anyone invested in fractional commercial real estate by Strata or any other start-ups?

I searched the thread but did nto get any recent reviews. Can anyone share their experieces with such investment.

The risk ofcourse is that it seems that it is not regulated. And you are just getting a peice of paper instead of physical property.

However, the rental yeild seems to be good. Can someone please shed some light on this?

Wouldn't you be better off investing in REITs? Similar concept as fractional ownership but with much better regulatory oversight, liquidity and returns.

[deep_bang]

Originally Posted by Abbas

Hello Guys,

Has anyone invested in fractional commercial real estate by Strata or any other start-ups?

I searched the thread but did nto get any recent reviews. Can anyone share their experieces with such investment.

The risk ofcourse is that it seems that it is not regulated. And you are just getting a peice of paper instead of physical property.

However, the rental yeild seems to be good. Can someone please shed some light on this?

I have invested and have some feedback. Firstly Strata is one of the better ones while there are many in this space. One of the challenges I see is that as a fractional owner, unless you own a significant share you are just too small a owner to influence any decision. So all decisions will be taken by the major shareholders and you will just have to move along. This is true even for listed companies but listed companies are regulated - here it's harder to know what is happening at the back.

If things go into a legal issue, there is no forum where you can unite with other owners to fight the problem. Well, you would know who the other owners are, but if all of them are geographically distributed it's hard to come together for a cause.

Coming to returns, please take into consideration there are 2 parts to the returns - the rental yield which will be taxed at your slab rates and the asset that gets capital appreciation. The capital appreciation will be subject to capital gains when you sell the asset. So the returns may be lesser that what they show at the outset.

However, I invested knowing all this as a diversification strategy. My only advice would be to go into this only for diversification and not the yield. Also, limit your capital you put into this to something you can afford to ignore if things go awry. It's very unlikely, but if debt funds can go awry, then this is much more likely than the debt funds.

[Abbas]

Originally Posted by deep_bang

If things go into a legal issue, there is no forum where you can unite with other owners to fight the problem. Well, you would know who the other owners are, but if all of them are geographically distributed it's hard to come together for a cause.

This is exactly what worries me. SEBI has come out with SM RIET policy for which hBits have applied. But that IPO is an year away. Hopefully that should build some confidence in investing in such asset class.

By the way, does strata distributes the rent in a timely manner? I mean does it get credited regularly on the given date?

[deep_bang]

Originally Posted by Abbas

By the way, does strata distributes the rent in a timely manner? I mean does it get credited regularly on the given date?

To their credit, the returns have been regular over the last few years. However, that's based on just what I have invested in . There could be other projects where there are other issues. There was a particular issue with a certain project that I am not much aware of but you can search online for the details. Property in India is still a very challenging affair - even when managed by large enterprises like Strata.

[amit1agrawal]

Originally Posted by rajathv8

I think he meant "Tech Forest" which is clearly in the lake area and is quite a disappointing sight. From the looks of it, Prestige Sommerville too appears to be on potentially dubious land.

Yes, I meant "Tech Forest"; my bad. Prestige Raintree Park is on the adjacent land which is too on lake bed. I came to know it got RERA approval 3 days back. Google reviews have 1-star rating because you can't rate lower. I wonder who would spend crores buying such a dubious property! If one is buying for living there, you are doomed. If you buying for investing, there are less riskier & better avenues available.