India’s first registered Small and Medium Real Estate Investment Trust (SM REIT), Property Share Investment Trust (PSIT), has opened its initial public offering (IPO) for subscription today, December 2, 2024.
The offering will remain open until December 4, 2024. This marks a significant development in the Indian real estate market, providing investors with a new avenue to invest in high-quality commercial properties.
Key Details of the IPO
- Price Band: The units are priced between ₹10,00,000 and ₹10,50,000 per unit, with a minimum bid size of ₹10,00,000.
- Subscription Period: The IPO is open from December 2 to December 4, 2024.
- Lead Manager: ICICI Securities Limited is acting as the sole lead manager for this offering.
- Registrar: KFin Technologies Limited has been appointed as the registrar for the issue.
About PropShare Platina
PropShare Platina is the inaugural scheme under PSIT. The primary objective of this IPO is to raise ₹353 crore, which will be utilized to acquire a 246,935 square feet office space at Prestige Tech Platina, a LEED Gold certified building located on Bengaluru’s Outer Ring Road.
This area is a prominent IT corridor, housing major multinational corporations. The property is fully leased to a U.S.-based tech company under a nine-year lease agreement, featuring a 15% rent escalation every three years.
Projected Returns
The scheme offers a projected distribution yield of 9% for the fiscal year 2025-26, making it an attractive option for investors seeking stable income from commercial real estate investments. Additionally, the investment manager has waived all annual management expenses for FY25 and FY26, enhancing the potential returns for investors.
Understanding SM REITs
Small and Medium REITs are a new asset class regulated by the Securities and Exchange Board of India (SEBI) as a subclass within the REIT framework, focusing on assets valued between ₹50 crore and ₹500 crore. This initiative aims to democratize real estate investments, allowing investors to access high-quality commercial properties with relatively lower investment thresholds.
Important Dates
- Allotment Date: December 5, 2024
- Listing Date: December 9, 2024
This IPO represents a significant milestone in the Indian real estate sector, offering investors a unique opportunity to participate in the growth of premium commercial properties through a regulated and transparent investment vehicle.
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