Property Share files draft papers with Sebi for ₹353 crore IPO; details here

Property Share Investment Trust, a small and medium real estate investment trust, on Friday, filed its draft papers with market regulator Securities and Exchange Board of India (Sebi) for ₹353 crore initial public offering (IPO).

The proceeds from the offer are planned to be used mainly for acquiring the Prestige Tech Platina asset by the Platina SPVs (special purpose vehicles), with any remaining funds allocated for other general corporate purposes.

The IPO will be a fresh issue of Platina units, with no offer for sale.

ICICI Securities Limited is the sole lead manager to the Offer and Cyril Amarchand Mangaldas is the 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 of 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.

“With the introduction of SM REITs, the regulator has introduced a regulatory framework for a new asset class to the varied class of public investors. We believe 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 ₹10 lakh," said Hashim Khan, Director, Property Share.

About the company

PropShare Platina includes 246,935 square feet of office space within Prestige Tech Platina, a LEED Gold-certified office building situated on Outer Ring Road in Bengaluru. The space is set to be entirely leased to a US-based tech company under a new nine-year lease agreement, featuring a 4.6-year weighted average lock-in period and a 15 per cent rent escalation every three years. Investors in this scheme can expect a projected distribution yield of 9 per cent for FY26.

The Outer Ring Road is the largest office market in Bengaluru, accounting for approximately 34 per cent of the total office space, according to research by Jones Lang LaSalle. It hosts the offices of numerous multinational companies, including Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, and Wells Fargo. Developed by The Prestige Group, the asset is conveniently located near the upcoming metro station that will connect the Outer Ring Road to the airport.

For the first scheme, PropShare Investment Manager Private Limited has decided to waive all annual management expenses, including investment and property management fees, for FY25 and FY26. From FY27, a nominal fee of 0.25 per cent will be charged, increasing to 0.30 per cent from FY28 onward. Property Share will also invest at least 5 per cent of the scheme's units, amounting to ₹17.6 crore, from its own capital.