Property Share files papers for ₹472 crore IPO for its second SM REIT scheme

Property Share Investment Trust, India's first registered Small and Medium Real Estate Investment Trust (SM REIT), has filed a draft document for a Rs 472 crore Initial Public Offering (IPO) of PropShare Titania, its second SM REIT scheme.

The IPO comprises a fresh issue of Titania units with no Offer For Sale (OFS) component, Property Share Investment Trust said in a statement on Thursday.

PropShare Titania comprises a 4,37,973 sq ft of grade A+ office space in G Corp Tech Park located in Mumbai, with ESG certifications. It is fully occupied by a diversified tenant portfolio comprising Fortune 500 companies, MNCs and blue-chip tenants including Aditya Birla Capital and Concentrix.

The Trust said that tenants have occupied the building for more than nine years and have a 3.3-year weighted average lease expiry in the building. There is a 5 per cent annual rental escalation across all the tenant leave and licence agreements.

The scheme offers investors a projected distribution yield of 9% for FY26 and FY27, while 9.1% for FY28.

Proceeds from the issue are proposed to be utilised primarily for the acquisition of the asset.

PropShare Titania is located on the main Ghodbunder road, Thane, which is part of the Mumbai Metropolitan Region. Thane has a large residential catchment area with strong social infrastructure.

"After the success of our first scheme of SM REIT, we are excited to launch PropShare Titania. This marks another milestone in our mission in creating a transparent, liquid, and institutional-quality real estate investment platform for individual investors. In a volatile equity market environment, rent-yielding commercial assets like SM REITs are emerging as an alternative investment opportunity for investors,"Kunal Moktan, Co-founder, Property Share said.

In December, Property Share Investment Trust floated ₹353-crore IPO of PropShare Platina, its first SM REIT scheme.

SM REITs are a new asset class introduced by the Securities and Exchange Board of India (Sebi) as a sub-class within the REIT framework for assets valued between ₹50 and ₹500 crore. Similar to REITs, SM REIT units are required to be listed on the stock exchanges but with a minimum lot size of 1 unit of ₹10 lakh.

Under the framework, SM REITs are not permitted to invest in under-construction assets or land and must distribute 95% of earnings as distributions to unit holders.

Kotak Mahindra Capital Company is the sole lead manager to the issue. The units are proposed to be listed on BSE.