Property Share files offer document for Rs 353 crore IPO of India's first SM REIT

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 with an aggregate of 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 a fresh issue of Platina units with no offer-for-sale component. The Offer Proceeds are proposed to be utilised primarily for acquiring the Prestige Tech Platina asset by the Platina SPVs, with the remaining utilised for other general corporate purposes,” the company 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,” said Kunal Moktan, Director of Property Share.

PropShare Platina comprises around 2.46 lakh sq ft of office space in Prestige Tech Platina, 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. The Units are proposed to be listed on BSE Limited.

“SM REIT’s direct investment model allows investors to invest in the particular asset, tenant and micro market of their choice, 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,” said Hashim Khan, Director of Property Share.

Property Share received the SM REIT license after the securities market regulator, the Securities and Exchange Board of India, notified the SM REIT regulations in March 2024.

For this scheme, the Investment Manager, PropShare Investment Manager Private Liall annual management expenses (including investment management fee and property management fee) for FY 25 and FY26 and charge a fee of 0.25% in FY27 and 0.30% from FY28 onwards. Property Share will also invest a minimum of 5% of the scheme's units.

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 to 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.

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 crore. 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—-STCG of 20% and LTCG of 12.5% for units held for more than 12 months.