Consider the following statements about Small and Medium Real Estate Investment Trusts (MSM-REITs):
1. It functions as pooled investment vehicles enabling the fractional ownership and monetisation of real estate and infrastructure assets.
2. The size of the asset proposed to be acquired in a scheme of the SM REIT shall be at least 50 crore and less than 500 crore.
3. A minimum of 95% of the scheme’s asset value must be invested in completed and revenue-generating real estate projects.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 only
(c) 2 and 3 only
(d) 1, 2 and 3

Question

Consider the following statements about Small and Medium Real Estate Investment Trusts (MSM-REITs):
1. It functions as pooled investment vehicles enabling the fractional ownership and monetisation of real estate and infrastructure assets.
2. The size of the asset proposed to be acquired in a scheme of the SM REIT shall be at least 50 crore and less than 500 crore.
3. A minimum of 95% of the scheme&rsquo;s asset value must be invested in completed and revenue-generating real estate projects.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 only
(c) 2 and 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: SM REITs (Small and Medium Real Estate Investment Trusts) are pooled investment vehicles designed to facilitate fractional ownership and monetisation of real estate assets. They allow multiple investors to jointly invest in revenue-generating real estate.

Statement 2 is correct: As per the notified SEBI framework, the value of assets acquired in any scheme of SM REITs must be at least ₹50 crore and less than ₹500 crore.This defines the "small and medium" categorization and distinguishes them from traditional REITs.

Statement 3 is correct: An SM REIT scheme must invest at least 95% of its asset value in completed and revenue-generating properties.Investment in under-construction or non-revenue-generating projects is not permitted.

Min. Time: 3 S Max Time: 3 S
M Question 1	⏱ 0
Consider the following statements about Small and Medium Real Estate Investment Trusts (MSM-REITs): 1. It functions as pooled investment vehicles enabling the fractional ownership and monetisation of real estate and infrastructure assets. 2. The size of the asset proposed to be acquired in a scheme of the SM REIT shall be at least 50 crore and less than 500 crore. 3. A minimum of 95% of the scheme’s asset value must be invested in completed and revenue-generating real estate projects. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 1 only (c) 2 and 3 only (d) 1, 2 and 3

Real Estate Investment Trusts (REITs)

Small and Medium REITs (MSM-REITs)

Website Link

Test Your Knowledge

Student Resources