Property Share files offer document for Rs 353 crore IPO of its SM Reit

Property Share Investment Trust (PSIT) is India's first registered small and medium real estate investment trust (SM Reit)

Property Share Investment Trust (PSIT), India’s first registered small and medium real estate investment trust (SM Reit), has filed an offer document for an initial public offering (IPO) of PropShare Platina, the first scheme under PSIT. The offering, aggregating up to Rs 353 crore, is entirely a fresh issue.

 

The price band for the issue is Rs 10 lakh to Rs 10.5 lakh per unit, and it will open for subscription on December 2, 2024. The minimum bid size is one unit.

 

There will be no offer-for-sale (OFS) component. According to a statement by the SM Reit, the proceeds from the offer will primarily be used for the acquisition of the Prestige Tech Platina asset by the Platina special purpose vehicles (SPVs) and for general corporate purposes.

 

PropShare Platina comprises 246,935 square feet of office space in Prestige Tech Platina, a LEED Gold-certified office building located on Outer Ring Road (ORR), Bengaluru, developed by the Prestige Group. It is proposed to be fully leased to a US-based tech company under a fresh nine-year lease, with a 4.6-year weighted average lock-in period and a 15 per cent rent escalation every three years.

 

The scheme offers investors a projected distribution yield of 9.0 per cent for the financial year 2026 (FY26), 8.7 per cent for FY27, and 8.6 per cent for FY28.

 

Kunal Moktan, director at Property Share, said, “We believe SM Reits like PropShare Platina provide investors with an alternative asset class offering 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.”