Property Share 2024 Has Submitted Draft Papers to SEBI for an IPO Valued at ₹353 Crore Here are the Details

Property Share Investment Trust has recently submitted draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at ₹353 crore. This significant move aims to raise capital primarily for the acquisition of the Prestige Tech Platina asset through Platina special purpose vehicles (SPVs). In addition to this, any remaining funds will be allocated for general corporate purposes, highlighting the company’s strategic focus on expanding its real estate portfolio. The Prestige Tech Platina, located in Bengaluru, encompasses 246,935 square feet of LEED Gold-certified office space that is fully leased to a US-based tech company. The asset comes with a favorable nine-year lease agreement, featuring a lock-in period and a structured rent escalation plan.

Property Share 2024

Investors can anticipate a promising distribution yield of 9 percent for FY26, making this IPO an appealing opportunity for those looking to invest in high-quality commercial properties. As India’s first Small and Medium Real Estate Investment Trust (SM REIT) scheme, this offering allows public investors to engage in Grade A commercial property investments starting from ₹10 lakh. With the backing of reputable financial institutions and legal counsel, Property Share is poised to leverage this IPO to solidify its position in the growing real estate market.

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Property Share IPO Overview

IPO Value₹353 crore
SEBI Filing DateSeptember 2024

Use of Funds in Property Share IPO

Purpose of FundsAcquisition of Prestige Tech Platina
Additional Use of FundsGeneral corporate purposes

Type of Property Share Offering

Type of IssueFresh issue of Platina units
Offer for SaleNone

Management Team for Property Share IPO

Lead ManagerICICI Securities Limited
Legal CounselCyril Amarchand Mangaldas

Registrar and Trustee for Property Share

RegistrarKFin Technologies Ltd
TrusteeAxis Trustee Services Limited

Investment Management in Property Share

Investment ManagerPropShare Investment Manager Private Limited
Listing ExchangeBSE

Property Share Asset Specifications

Total Office Space246,935 square feet

Lease Terms for Property Share Asset

Lease DurationNine years
Rent Escalation15% every three years

Lock-in Period for Property Share

Lock-in Period4.6 years

Projected Returns for Property Share Investors

Projected Distribution Yield9% for FY26

Property Share Location Insights

Asset LocationOuter Ring Road, Bengaluru

Tenant Overview for Property Share

Major TenantsUS-based tech company

Market Presence of Property Share

Office Market Share34% of total office space in Bengaluru

Amenities Near Property Share Asset

Nearby AmenitiesUpcoming metro station

Competitive Landscape for Property Share

Competitor PresenceAdobe, Amazon, Google, etc.

Property Share Management Fee Structure

Management Fee FY25 & FY26Waived for first two years

Future Management Fees for Property Share

Management Fee FY270.25%

Long-term Management Fees for Property Share

Management Fee FY28 Onward0.30%

Investment Commitment from Property Share

Property Share InvestmentMinimum 5% of units (₹17.6 crore)

Property Share Summary

The initiation of Property Share’s IPO represents a strategic opportunity to tap into the burgeoning real estate market in India. By focusing on high-quality commercial assets and promising returns for investors, Property Share is set to make a significant impact in the SM REIT sector. With a robust management structure and a clear investment strategy, the firm is well-positioned for sustainable growth and success.

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