Property Share Investment Trust (PSIT), India’s first registered small and medium real estate investment trust (SM-REIT), has filed the offer document for PropShare Platina, the first scheme under PSIT, looking to raise up to Rs 352.91 crore via its primary offering.
The price band for the Issue is Rs 10 lakh to Rs 10.5 lakh per unit. The issue kicks off-for-bidding on Monday, December 2 and can be subscribed until Wednesday, December 4. Interest investors can apply for a minimum bid size is one unit, while it is offering 3,361 units. The issue is entirely a fresh issue of Platina units with no offer-for-sale component.
SM-REITs are a new asset class regulated by the SEBI as a subclass 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 per cent of earnings as distributions to unit holders.
The net proceeds from the issue shall be utilized towards acquisition of the Prestige Tech Platina asset by the Platina SPVs with the remaining utilized for other general corporate purposes. 75 per cent of the issue has been reserved for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) can apply for the remaining 25 per cent of the issue.
PropShare Platina comprises 246,935 square feet 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 every3 years.
The scheme offers investors a projected distribution yield of 9 per cent for the financial year 2025-26, 8.7 per cent for the financial year 2026-27 and 8.6 per cent for the financial year 2027-28. The units are proposed to be listed only on BSE, with December 9 as the tentative date of listing.
For this scheme, the Investment Manager, PropShare Investment Manager (Property Share) has decided to waive off all annual management expenses (including investment management fee and property management fee) for FY25 and FY26 and will charge a nominal fee of 0.25 per cent in FY27 and 0.30 per cent from FY28 onwards. Property Share will also invest a minimum 5 per cent of the units of the scheme.
ICICI Securities is the sole lead manager to the Offer and Cyril AmarchandMangaldas is Indian Legal Counsel to Property Share Investment Trust and the Investment Manager in relation the PropShare Platina. 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.
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, said Kunal Moktan, Director, Property Share. "With PropShare Platina, we are proud to be the first firm to bring this product to the Indian financial markets," he said.