Founded in June 2024, Property Share Investment Trust is a SEBI-registered real estate investment trust (REIT) focused on small and medium-sized properties. Its first scheme, PropShare Platina, comprises six fully owned special purpose vehicles (SPVs) in accordance with REIT regulations. Axis Trustee Services Limited acts as the trustee, providing services as a debenture trustee, security trustee, and facility agent.
Property Share Investment Trust (PSIT), which is India’s inaugural registered small and medium real estate investment trust (SM Reit), has submitted an offer document for the initial public offering (IPO) of PropShare Platina, its first scheme. This offering, totalling up to Rs 353 crore, consists entirely of new shares.
The price range for the offering is set between Rs 10 lakh and Rs 10.5 lakh per unit, with subscriptions opening on December 2, 2024. The minimum investment requirement is one unit, and there will be no component for offer-for-sale (OFS). As stated by the SM Reit, proceeds from this offering will mainly be allocated for acquiring the Prestige Tech Platina asset through the Platina special purpose vehicles (SPVs) as well as for general corporate uses.
The Property Share REIT IPO is a book-built offering valued at Rs. 352.91 crores, comprising solely new shares. Subscriptions will be available from December 2 to December 4, 2024, with allotments anticipated on December 5 and listings on the BSE and NSE set for December 9, 2024. The price band for the IPO has not been disclosed yet, and the minimum application lot size is one share. ICICI Securities Limited serves as the book-running lead manager, while Kfin Technologies Limited acts as the registrar for this offering.
PropShare Platina consists of 246,935 square feet of office space situated within Prestige Tech Platina, a LEED Gold-certified office building on Outer Ring Road (ORR) in Bengaluru, developed by the Prestige Group. It is intended to be completely leased to a US-based technology firm under a new nine-year agreement, featuring a 4.6-year weighted average lock-in period and a 15% rent increase every three years.
The investment scheme projects a distribution yield of 9.0% for the financial year 2026 (FY26), 8.7% for FY27, and 8.6% for FY28.
“We are confident that SM Reits such as PropShare Platina offers investors a different asset class that combines regular rental income with capital growth from the underlying real estate. With PropShare Platina, we take pride in being the first company to introduce this product in the Indian financial markets.”
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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