Property Share Launches India's First SM REIT Scheme with ₹353-Cr IPO
Property Share, founded by Kunal Moktan and Hashim Khan, files for IPO of PropShare Platina scheme, India's first Small and Medium Real Estate Investment Trust (SM REIT)
Property ShareSm ReitReal Estate Investment TrustIpoPrestige Tech PlatinaReal EstateSep 28, 2024
The IPO is a fresh issue, with no offer-for-sale component, and proceeds will be mainly used for the acquisition of the Prestige Tech Platina asset. The property, located in Bengaluru, includes 246,935 sq ft of office space and will be leased to a US-based tech firm for nine years, with rent increasing 15 per cent every three years.
Property Share was founded by Kunal Moktan and Hashim Khan, both with extensive real estate experience. The company boasts a senior team with 62 years of combined experience in the industry. ICICI Securities is the lead manager, and the units will be listed on the Bombay Stock Exchange (BSE).
SM REITs, a new asset class regulated by markets regulator Sebi, target assets valued between ₹50-500 crore and are required to distribute 95 per cent of earnings to investors. Investors in the PropShare Platina scheme are projected to receive a 9 per cent distribution yield for FY26.
The launch of Property Share's SM REIT scheme marks a significant milestone in India's real estate sector, providing investors with a new opportunity to participate in the growth of the industry.
The Prestige Tech Platina asset, which will be acquired using the IPO proceeds, is a high-quality office property with a strong tenant profile. The property is expected to generate significant rental income, providing a stable source of returns for investors.
Property Share's SM REIT scheme is designed to provide investors with a secure and stable source of income, with a focus on delivering long-term value. The company's experienced management team and strong track record in the real estate sector make it an attractive option for investors looking to diversify their portfolios.
Frequently Asked Questions
What is Property Share's SM REIT scheme?
Property Share's SM REIT scheme is an initial public offering (IPO) of its PropShare Platina scheme, worth up to ₹353 crore, which will be used to acquire the Prestige Tech Platina asset.
What is the expected distribution yield for investors in the PropShare Platina scheme?
Investors in the PropShare Platina scheme are projected to receive a 9 per cent distribution yield for FY26.
What is the tenure of the lease agreement for the Prestige Tech Platina asset?
The Prestige Tech Platina asset will be leased to a US-based tech firm for nine years, with rent increasing 15 per cent every three years.
Who is the lead manager for the IPO?
ICICI Securities is the lead manager for the IPO.
Where will the units be listed?
The units will be listed on the Bombay Stock Exchange (BSE).
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