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Property Share Investment Trust (PSIT), India&#s first registered small and medium REIT, has launched its initial scheme, PropShare Platina, aiming to raise INR 353 crore. The scheme involves leasing 246,935 sq. ft. of office space in Bengaluru's Prestige Tech Platina, fully leased to a US-based tech firm. Investors can anticipate a 9% distribution yield by FY26. To attract investors, the investment manager will waive management fees until FY27. The proceeds will facilitate the asset acquisition through special-purpose vehicles. ICICI Securities leads the offering, with Cyril Amarchand Mangaldas as legal counsel. Units will be listed on BSE Limited.
Property Share Investment Trust (PSIT), which holds the distinction of being India's first registered Small and Medium Real Estate Investment Trust (REIT), has submitted its draft documents for both the trust offer and scheme offer. This initiative, titled 'PropShare Platina,' aims to secure up to INR 353 crore. PropShare Platina will include 246,935 square feet of premium office space within Prestige Tech Platina, a LEED Gold-certified office building located on Bengaluru's Outer Ring Road (ORR). A major US-based tech firm will fully lease the space under a new 9-year agreement, which offers a 4.6-year weighted average lock-in period and 15% rental escalation every three years. Advertisement
Investors can expect a projected distribution yield of 9% by FY26. The Outer Ring Road is Bengaluru's largest office hub, housing roughly 34% of the city's total office stock, according to research by Jones Lang LaSalle (JLL). This corridor is home to global corporations such as Amazon, Google, Adobe, CISCO, and JP Morgan. Prestige Tech Platina's prime location offers excellent connectivity, including proximity to a forthcoming metro station that will link ORR directly to Bengaluru's airport, making it a strategic choice for investors and tenants alike.
In a bid to attract investors, PropShare Investment Manager Private Limited, which acts as the Investment Manager (IM) for PSIT, has decided to waive all annual management fees for FY25 and FY26. The waived fees encompass both investment management and property management charges. Beginning in FY27, the investment manager will introduce a nominal fee of 0.25%, which will increase marginally to 0.30% from FY28 onwards. To further align interests with investors, Property Share will invest at least 5% of the scheme's units, or INR 17.6 crore, from its own capital as part of its contribution to the offering.
The IPO consists entirely of newly issued units, with no offer-for-sale component involved. The investment manager will primarily allocate the offer proceeds to acquire the Prestige Tech Platina asset through special purpose vehicles (SPVs) and direct any remaining funds toward general corporate purposes. ICICI Securities Limited acts as the sole lead manager for the offer, with Cyril Amarchand Mangaldas serving as Indian legal counsel to both PSIT and the Investment Manager. KFin Technologies Ltd is the registrar for the offer, and Axis Trustee Services Limited is acting as the trustee. PropShare Investment Manager Private Limited will manage and oversee the offering in its capacity as the investment manager. The investment manager will list the scheme's units on BSE Limited, enhancing the trust's visibility and market presence.
In summary, the launch of PropShare Platina positions PSIT as a leader in India's real estate sector. With a prime asset and an experienced management team, PSIT is well-equipped to capitalise on future opportunities while delivering value to investors.
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