Property Share Investment Trust, which is registered with Securities and Exchange Board of India as a small and medium REIT, has filed the draft offer document for the issue of units of its scheme, PropShare Platina, to raise ₹353 crore.
The money from initial public offer of the units will be mostly deployed to acquire space in Prestige Tech Platina located in Bengaluru’s Outer Ring Road. PropShare Platina will have around 2.6 lakh square feet space which will be fully leased to a US-based tech company for nine years.
The space being acquired is spread across six floors including the ground floor. The starting rental is expected to be around ₹103 per square feet, with 15 per cent escalation every three years. There will be a 3.7 year staggered lock-in. The scheme offers investors distribution yield of 9 per cent in FY26, 8.7 per cent in FY27 and 8.6 per cent in FY28.
The REIT expects to do one more deal by the end of the current fiscal year, according to Director, Kunal Moktan.
Alternative asset class
The price band for the issue is has been fixed at ₹10-10.5 lakh per unit and it will open for subscription on December 2, with the minimum bid size at 1 unit. The units will be listed on the BSE. “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,” said Moktan.
SM REITs are a recent entrant into the securities market and while they function like REITs in that the underlying assets are properties, they differ from them in that every new asset launch is accompanied by the issue of new units, on the same lines as new fund offers by mutual funds.