PropShare Platina comprises 246,935 sq ft of office space in Prestige Tech Platina, a LEED Gold office building located on Outer Ring Road (ORR), Bangalore. It 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% rent escalation every three years. The scheme offers investors a projected FY26 distribution yield of 9.0%.
“We believe SM REIT’s model of investing directly in focused income-generating assets provides access to a universe of real estate at yields that has until now been unavailable to public investors,” said Kunal Moktan, Director, Property Share.
Property Share is the first firm to receive the SM REIT license after the securities market regulator, the Securities and Exchange Board of India, notified the SM REIT regulations in March 2024.
“Property Share will also invest a minimum of 5% of the units of the scheme or Rs. 17.6 crores from its capital into the offering as the IM contribution. The IPO is entirely a fresh issue of Platina units with no offer-for-sale component,” the company said.
The offer proceeds are proposed to be used primarily for the acquisition of the Prestige Tech Platina asset by the Platina SPVs, with the remaining portion used for other general corporate purposes.
“With the introduction of SM REITs, the regulator has introduced a regulatory framework for a new asset class to the varied class of public investors. 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, Director, Property Share.
For the first scheme, the Investment Manager, PropShareInvestment Manager Private Limited (“Property Share” or “IM”) has decided to waive off all annual management expenses (including investment management fee and property management fee) for FY 25 and FY26 and will charge a nominal fee of 0.25% in FY27 and 0.30% from FY28 onwards.
Outer Ring Road is the largest office market in Bangalore with 34% of total office stock as per research by Jones Lang LaSalle and houses offices of various multinationals including Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, Wells Fargo among others.
SM REITs are a new asset class regulated by the Securities and Exchange Board of India as a subclass within the REIT framework for assets valued between Rs. 50-500 crores. Similar to REITs, SM REIT units are required to be listed on the stock exchanges but with a higher minimum lot size of Rs. 10 lakhs. SM REITs are not permitted to invest in under-construction assets or land and must distribute 95% of earnings as distributions to unit holders.