India’s First Small and Medium Real Estate Investment Trust SM-REIT Launches PropShare Platina IPO
India’s real estate market is set to witness a groundbreaking development with the launch of the PropShare Platina IPO, the country’s first Small and Medium Real Estate Investment Trust (SM-REIT). The Property Share Investment Trust (PSIT), the firm behind the SM-REIT, has announced the commencement of the ?353 crore IPO, scheduled to open on December 2, 2024, and close on December 4.
A Transformative Opportunity for Real Estate Investors
The PropShare Platina IPO is expected to redefine real estate investment opportunities in India. Fully comprised of fresh Platina unit issuances with no Offer for Sale (OFS), the IPO is priced between ?10 lakh and ?10.5 lakh per unit. The funds raised through the IPO will primarily facilitate the acquisition of Prestige Tech Platina, a premium LEED Gold-certified office building located on Bengaluru’s Outer Ring Road (ORR).
Prestige Tech Platina, spanning an impressive 2,46,935 square feet, is poised to become a prime asset in the real estate market. The property boasts a 9-year lease agreement with a reputable US-based tech company and features a 4.6-year weighted average lock-in period, ensuring long-term stability. Furthermore, the lease agreement also includes a provision for 15% rent escalations every 3 years.
A Lucrative Investment Opportunity
Investors in the PropShare Platina IPO can expect an attractive distribution yield. The distribution yield is projected to be 9% for FY26, 8.7% for FY27, and 8.6% for FY28. This combination of regular rental income and the potential for capital appreciation makes the SM-REIT an enticing investment for individuals looking for a balanced income-growth model.
A Unique Hybrid Investment Model
Kunal Moktan, Director of Property Share, emphasizes that SM-REITs like PropShare Platina offer a unique hybrid investment model. This model ensures a balance between regular income and long-term growth, appealing to alternative asset seekers. Additionally, Hashim Khan, another director at the firm, underscores the direct investment model employed by the SM-REIT. The direct investment model allows investors to choose specific assets, tenants, and markets, empowering them as key decision-makers.
ICICI Securities: Managing the IPO and Pathways to Success
The management of the PropShare Platina IPO will be solely handled by ICICI Securities, a prominent name in the Indian financial services industry. This streamlined approach aims to ensure efficient execution and better investor confidence.
Once the IPO is successfully completed, the units of the SM-REIT are proposed to be listed on the Bombay Stock Exchange (BSE). With this landmark development, investors will have access to innovative investment opportunities tailored to modern financial portfolios.
The launch of the PropShare Platina IPO marks a significant milestone in Indian real estate, as it introduces a transformative investment avenue. This SM-REIT not only paves the way for future developments in the sector but also creates multiple benefits for investors seeking diverse and lucrative real estate options.
