Property Share files Draft Offer Document for Rs 353 crore Initial Public Offering for India’s first SM REIT scheme

Mumbai/Bengaluru, 27th September, 2024: Property Share Investment Trust (“PSIT”), India’s first registered Small and Medium Real Estate Investment Trust, has filed the Draft Trust Offer Document and Draft Scheme Offer Document for PropShare Platina, the first scheme under PSIT aggregating to up to Rs 353 crore.

PropShare Platina comprises 246,935 sf of office space in Prestige Tech Platina, a LEED Gold office building located on Outer Ring Road (ORR), Bangalore proposed to be fully leased to a US-based tech company through a fresh 9-year lease with a 4.6 year weighted average lock-in and 15% escalation in rents every 3 years. The scheme offers investors a projected FY26 distribution yield of 9.0%. 

Outer Ring Road is the largest office market in Bangalore with c. 34% of total office stock as per research by Jones Lang LaSalle and houses offices of various multinationals including Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, Wells Fargo among others. The asset, developed by The Prestige Group is located close to the upcoming metro station that is set to connect ORR to the Airport.

For the first scheme, the Investment Manager, PropShare Investment Manager Private Limited ("Property Share” or “IM”) has decided to waive off all annual management expenses (including investment management fee and property management fee) for FY 25 and FY26 and will charge a nominal fee of 0.25% in FY27 and 0.30% from FY28 onwards. Property Share will also invest a minimum 5% of the units of the scheme or Rs. 17.6 crores from its capital into the offering as the IM contribution. The IPO is entirely a fresh issue of Platina units with no offer for sale component.

The Offer Proceeds are proposed to be utilized primarily for acquisition of the Prestige Tech Platina asset by the Platina SPVs with the remaining utilized for other general corporate purposes.

Kunal Moktan, Director, Property Share said “We are proud and excited to launch PropShare Platina, India’s first Small and Medium Real Estate Investment Trust (SM REIT) scheme. We believe SM REIT’s model of investing directly in focused income-generating assets provides access to a universe of real estate at yields that has until now been unavailable to public investors.”

Hashim Khan, Director, Property Share said “With the introduction of SM REITs, the regulator has introduced regulatory framework for a new asset class to the varied class of public investors. We believe PropShare Platina - India’s 1st SM REIT scheme, offers investors an opportunity to invest in a Grade A pre-leased commercial property at a ticket size starting Rs 10 lakhs.”

The Investment Manager to the Trust, Property Share has an experienced team comprising 44 members having academic pedigree from leading IITs and IIMs with institutional investing experience across leading international and domestic real estate funds. Property Share’s 11 member senior investing team comes with a cumulative experience of 62 years in commercial real estate investing in India. (Source: Draft Scheme Offer Document)

ICICI Securities Limited is the sole lead manager to the Offer and Cyril Amarchand Mangaldas is Indian Legal Counsel to Property Share Investment Trust and the Investment Manager in relation the PropShare Platina. Further, KFin Technologies Ltd is the registrar to the offer. Axis Trustee Services Limited is the Trustee for the Issue, and PropShare Investment Manager Private Limited is the Investment Manager for the offer. The Units are proposed to be listed on BSE Limited (“BSE”) (the “Stock Exchange”).