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Property Share Investment Trust, India's first registered Small and Medium Real Estate Investment Trust (SM REIT), has filed a draft document for an INR 472 crore Initial Public Offering (IPO) of PropShare Titania, its second SM REIT scheme. The IPO will solely consist of a fresh issue of Titania units, with no Offer For Sale (OFS) component. PropShare Titania comprises 4,37,973 sq ft of grade A+ office space in G Corp Tech Park, Mumbai, fully occupied by prominent tenants like Aditya Birla Capital and Concentrix. The scheme offers projected distribution yields of 9 per cent for FY26 and FY27 and 9.1 per cent for FY28. Proceeds from the IPO will primarily be utilised for asset acquisition.
Property Share Investment Trust, India's inaugural Small and Medium Real Estate Investment Trust (SM REIT), has submitted a draft document for an INR 472 crore Initial Public Offering (IPO) for PropShare Titania, its second SM REIT scheme. The Trust disclosed in a statement earlier this week that the IPO will consist solely of a fresh issuance of Titania units, without any Offer For Sale (OFS) component. Advertisement
PropShare Titania includes 4,37,973 sq ft of premium grade A+ office space within G Corp Tech Park, situated in Mumbai. The property, bearing ESG certifications, is entirely occupied by a diverse range of tenants, including Fortune 500 firms, multinational corporations, and blue-chip companies such as Aditya Birla Capital and Concentrix. The Trust stated that tenants have occupied the building for over nine years, with a weighted average lease expiry of 3.3 years and a 5 per cent annual rental escalation across all leave and licence agreements.
The investment scheme is projected to deliver a distribution yield of 9 per cent for FY26 and FY27, and 9.1 per cent for FY28. The Trust announced that the proceeds from the IPO are intended to be primarily allocated for the acquisition of the asset.
Strategically located on the main Ghodbunder road in Thane, part of the Mumbai Metropolitan Region, the site is well-connected to a vast residential catchment area and robust social infrastructure.
Kunal Moktan, Co-founder of Property Share, remarked that the launch of PropShare Titania follows the success of the Trust's first SM REIT scheme and represents another significant milestone in their mission to develop a transparent, liquid, and institutional-grade real estate investment platform for retail investors. He emphasised that in the current volatile equity market, rent-yielding commercial assets like SM REITs are gaining traction as an alternative investment vehicle.
In December, Property Share had launched its first SM REIT scheme, PropShare Platina, raising INR 353 crore through its IPO. The Securities and Exchange Board of India (SEBI) introduced SM REITs as a distinct asset class under the broader REIT framework, targeting assets valued between INR 50 crore and INR 500 crore. Similar to conventional REITs, SM REIT units must be listed on stock exchanges, albeit with a minimum lot size of one unit priced at INR 10 lakh.
The regulatory framework mandates that SM REITs cannot invest in under-construction properties or land and are required to distribute 95 per cent of earnings to unit holders. Kotak Mahindra Capital Company is the sole lead manager for the issue, with the units scheduled for listing on the BSE.
With regulatory requirements ensuring the distribution of 95 per cent of earnings and prohibiting investments in under-construction assets, SM REITs are emerging as a credible asset class for retail investors. The successful launch of PropShare Platina in December has set a precedent, and the upcoming Titania IPO further underscores the Trust's commitment to establishing a robust real estate investment platform tailored for individual investors.
Source - PTI
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