Issue of India's 1st SM REIT scheme opens 2nd December’24
FinTech BizNews Service
Mumbai, 25 November, 2024: 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 Rs353 crore.
The price band for the Issue is Rs10 lac to Rs10.5 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 ("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.
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”).
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.
(Source: Scheme Offer Document)
About SM REITs
SM REITs are a new asset class regulated by the Securities and Exchange Board of India as a sub-class
within the REIT framework for assets valued between Rs. 50-500 crores. Similar to REITs, SM REIT units
are required to be listed on the stock exchanges but with a minimum lot size of Rs. 10 lakhs. SM REITs
are not permitted to invest in under-construction assets or land and must distribute not less than 95%
of earnings as distributions to unit holders. The tax treatment on capital gains from the units of SM
REITs would be the same as that for equity investments i.e. STCG of 20% and LTCG of 12.5% for units
