India's First SM REIT Scheme: PropShare Platina to Raise Rs 353 Crore
Property Share Investment Trust launches India's first small and medium real estate investment trust scheme, PropShare Platina, to raise Rs 353 crore.
Property SharePropshare PlatinaSm ReitReal Estate Investment TrustIcici SecuritiesReal EstateSep 27, 2024
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 around 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 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 crore 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 utilised primarily for the acquisition of the Prestige Tech Platina asset by the Platina SPVs with the remaining utilised 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. 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 lakh.”
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 is the registrar to the offer. Axis Trustee Services is the trustee for the issue, and PropShare Investment Manager is the investment manager for the offer. The units are proposed to be listed on BSE.
Disclaimer Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Frequently Asked Questions
What is PropShare Platina?
PropShare Platina is India's first small and medium real estate investment trust (SM REIT) scheme launched by Property Share Investment Trust.
How much does PropShare Platina aim to raise?
PropShare Platina aims to raise up to Rs 353 crore.
What is the projected distribution yield of PropShare Platina?
The scheme offers investors a projected FY26 distribution yield of 9.0%.
Who is the investment manager for PropShare Platina?
PropShare Investment Manager Private is the investment manager for PropShare Platina.
Where will the units of PropShare Platina be listed?
The units are proposed to be listed on BSE.
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