Fractional ownership platform Property Share, which registered its small, medium real estate investment trust (SM REIT) with the market regulator last month, has filed papers for listing its maiden scheme under the REIT, making it the first such listing proposal in India.
The company, which was the first to register with the Securities and Exchange Board of India, has filed the Draft Trust Offer Document and Draft Scheme Offer Document for PropShare Platina, the first scheme under its registered REIT, Property Share Investment Trust.
The size of the public listing is a little over Rs 350 crore, with about 246,000 square feet of office space in Prestige Tech Platina, to be put up for public listing. The asset, located on Outer Ring Road in Bengaluru, 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 3 years.
The proceeds from the public listing shall be used for acquisition of asset, while the remaining utilized for other general corporate purposes.
The announcement comes a day after Rudrabhishek Enterprises Ltd, a listed urban development and infrastructure consulting company, registered its maiden SM REIT, the second such registration in India.
Property Share, the investment manager of the SME REIT, will also invest in at least 5% of the units of the scheme or about Rs. 17.6 crores from its capital into the offering. It has also proposed to waive off all its management expenses including investment management fee and property management fee for this fiscal and the next, charging a fee of 0.25% in FY27 and 0.30% from FY28 onwards.
“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 Rs 10 lakhs,” said Hashim Khan, one of the directors at Property share alongside former Blackstone executive Kunal Moktan.
SEBI notified the framework for SM REITs this March. The latest framework brought down the minimum investment amount to Rs 10 lakh from Rs 25 lakh, which was the norm for fractional ownership earlier, allowing investors to put money in rent-generating commercial and residential real estate assets.
The listing process of this asset class is like other larger REITs, albeit with a few differences. Unlike large REITs, SM REITs’ assets must be about 95% completed.
