Property Share files Offer Document for Rs 353 crore IPO of India’s 1st SM REIT scheme, Issue opens 2nd December’24
The subscription will open on December 2, 2024, and close on December 4, 2024. The price band is set at ₹10–10.5 lakh per unit, with a minimum bid size of one unit.
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.
BILKULONLINE
Ahmedabad, Nov 26: Property Share Investment Trust (PSIT), India’s first registered Small and Medium Real Estate Investment Trust, has filed the Offer Document for PropShare Platina, the first scheme under PSIT and India’s first SM REIT aggregating to up to Rs 353 crore.
The price band for the Issue is Rs 10 lac to Rs 10.5 lac per unit and it will open for subscription on 2nd December, 2024. The minimum bid size is 1 unit.
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.
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, developed by the Prestige group and 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 escalation in rents every 3 years. The scheme offers investors a projected distribution yield of 9.0% for the financial year 2026, 8.7% for the financial year 2027 and 8.6% for the financial year 2028.
For this scheme, the Investment Manager, PropShare Investment Manager Private Limited 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.
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.
Kunal Moktan, Director, Property Share said “We believe SM REITs like PropShare Platina provide investors with an alternative asset class with hybrid returns in the form of regular rental yields and capital appreciation of the underlying real estate. With PropShare Platina, we are proud to be the first firm to bring this product to the Indian financial markets.”
Hashim Khan, Director, Property Share said “SM REIT’s direct investment model allows investors to invest in the particular asset, tenant and micro market of their choosing putting investors at the forefront of the decision-making process. We are excited to be the first to make this happen for Indian retail and institutional investors through PropShare Platina.”
The Investment Manager to the Trust, Property Share has an experienced team comprising 43 members having academic pedigree from leading IITs and IIMs with institutional investing experience across 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.
Property Share received the SM REIT license after the securities market regulator Securities and Exchange Board of India notified the SM REIT regulations in March 2024.
The parent company of Property Share was founded in 2015 by Hashim Khan and Kunal Moktan. Prior to co-founding Property Share, Kunal spent more than 7 years at global real estate fund, The Blackstone Group investing in Indian real estate. He holds an MBA from the Indian Institute of Management (Ahmedabad). Hashim has more than 8 years of experience in real estate investing at Property Share prior to which he worked in a large middle eastern conglomerate. Hashim holds a B. Tech from the Indian Institute of Technology (Kanpur) and an MBA from the Indian Institute of Management (Ahmedabad).
Along with Kunal and Hashim, Property Share’s board consists of Benjamin Oliver Speat Cassey – who comes with extensive UK real estate experience; Jagdish Chandra Sharma – who has over twenty years of experience in real estate, including nine years as vice chairman and managing director at Sobha Limited; Rachna Dikshit – a seasoned banking professional with senior roles at the Reserve Bank of India; and Ramakrishnan Seshan – an IIM-Calcutta alumnus with over twenty years of experience in retail banking, including over eleven years as head of wealth and private banking at HSBC India.
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