Property Share Files Draft Papers For Rs 353-Crore SM-REIT IPO
The IPO comprises only a fresh issue, with no offer for sale component, as per the draft papers.
Property Share Investment Trust on Friday filed the draft papers for its small and medium real estate investment trust, or SM-REIT, public issue to raise Rs 353 crore.
The IPO comprises only a fresh issue, with no offer for sale component, as per the draft papers.
Property Share said it will also invest a minimum of 5% of the units of the scheme or Rs 17.6 crore, from its capital into the offering as part of the investment manager's contribution.
The company aims to raise Rs 353 crore for PropShare Platina, which is the first scheme under the trust.
PropShare Platina comprises 246,935 square feet of office space in Prestige Tech Platina, located in the tech hub of Bangalore, it said in a release. "It is 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 15% escalation in rents every three years," it added.
"The scheme offers investors a projected FY26 distribution yield of 9%," the release further said.
ICICI Securities Ltd. is the sole lead manager to the offer, KFin Technologies Ltd. is the registrar, and Axis Trustee Services Ltd. is the trustee for the issue.
The offer proceeds will be utilised primarily for acquisition of "the Prestige Tech Platina asset by the Platina SPVs," the company said.
A portion of the amount raised will also be used for other general corporate purposes, it added.
"We believe SM REIT’s model of investing directly in focused income-generating assets provides access to a universe of real estate at yields that has until now been unavailable to public investors," Property Share Director Kunal Moktan said.
“We believe PropShare Platina, India’s first SM REIT scheme, offers investors an opportunity to invest in a Grade A pre-leased commercial property at a ticket size starting at Rs 10 lakh,” added Hashim Khan, who is another director in the company.
