NEW DELHI: Tech-enabled investment platform Strata has committed ₹96 crore to three RERA-approved residential projects in Chennai and Bengaluru, highlighting the increasing interest in private credit backed by Southern India’s real estate market.
The investment comes as demand for capital in southern India grows, particularly for plotted developments.
In Chennai, Strata has allocated ₹66 crore across two residential developments located in the Old Mahabalipuram Road (OMR) corridor. These investments are structured to yield targeted annual returns of approximately 16%, payable monthly or quarterly.
The funding will contribute to a 1.75-acre apartment project in Semmancherry and a 3.21-acre villa development in Navalur, both positioned within Chennai’s robust OMR corridor, which benefits from ongoing IT industry growth, established employment centers, and improved infrastructure.
Earlier this month, the Sameera Group, based in Tamil Nadu, secured funding from a real estate credit platform managed jointly by Aditya Birla Sun Life AMC and BGO, as they also pursue raising ₹500 crore for expansion across India.
In Bengaluru, Strata has invested around ₹30 crore in a RERA-registered plotted development near Devanahalli in northern Bengaluru. This investment aims for targeted annual returns of around 17% through a quarterly coupon model.
“North Bengaluru is emerging as one of the city’s most promising residential corridors,” stated Sudarshan Lodha, co-founder and CEO of Strata. “Its proximity to the airport and rapid infrastructure progress mirror the dynamics of Chennai’s OMR corridor, which is a mature residential market, driven by job growth, expanding infrastructure, and strong end-user demand.”
Nestled less than 16 km from Kempegowda International Airport, the 10.5-acre project is situated in one of north Bengaluru’s swiftly growing residential corridors. Improved connectivity has attracted significant investment in housing and logistics. The project, featuring average plot sizes of about 2,000 sq ft, is being developed by a Bengaluru-based company that has successfully completed over 16.8 million sq ft of projects.
“These transactions illustrate our ongoing commitment to structured credit opportunities supported by solid collateral and a security-first underwriting strategy. By merging these elements, we aim to generate secure private credit opportunities backed by quality real estate assets while focusing on capital preservation and enhancing real estate development in high-growth locations,” said Lodha.
Strata is supported by investors like Elevation Capital, Mayfield, Kotak Investment Advisors, and Gruhas.
“The growing involvement of institutional capital signals a maturing real estate market, where quality projects and experienced developers draw long-term investment,” said Somy Thomas, executive managing director of Land & Capital Markets at Cushman & Wakefield. “Demand for plotted developments remains strong, with Chennai consistently demonstrating healthy absorption and positive market fundamentals.”
