Property Share files for first SM REIT scheme to raise ₹353 crore

BL Mumbai Bureau Updated - September 27, 2024 at 09:28 PM.

Property Share Investment Trust, registered as a small and medium real estate investment trust, has filed the draft scheme document  for PropShare Platina, its first scheme to raise up to ₹353 crore.

 PropShare Platina comprises 2.47 lakh sq ft office space in Prestige Tech Platina, on Outer Ring Road, Bengaluru, which will 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 15 per cent escalation in rents every three years.

The scheme offers investors a projected FY26 distribution yield of 9 per cent. 

 Outer Ring Road is the largest office market in Bengaluru with over a third of total office stock and has offices of various multinationals including Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, Wells Fargo, among others.

The asset — developed by The Prestige Group — is located close to the upcoming metro station that is set to connect the outer ring road to the airport.

Fee waiver

For the first scheme, the Investment Manager, PropShare Investment Manager, 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 or ₹17.6 crore from its capital into the offering as its contribution. The IPO is entirely a fresh issue of Platina units with no offer-for-sale component.

The funds raised in the offer will be utilised primarily for acquisition of the Prestige Tech Platina asset by the Platina SPVs with the remaining for other general corporate purposes.

Published on September 27, 2024 14:35

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