Property Share (www.propertyshare.in) has become the first fractional ownership platform (FOP) to receive the Small and Medium Real Estate Investment Trust (SM REIT) license from the Securities and Exchange Board of India (SEBI) under the newly notified SM REIT regulations under the name of Property Share Investment Trust (PSIT). Property Share will become the investment manager to PSIT.
In Mar’24, SEBI notified the SM REIT regulations to bring FOPs within the regulatory framework as a subclass within the REIT regulations for assets valued between Rs. 50 and 500 crores. Similar to REITs, SM REITs are fully regulated by SEBI with units of each of the schemes listed on the stock exchanges.
Founded in 2016 by IIM, Ahmedabad batchmates Kunal Moktan and Hashim Khan, Property Share was one of the first platforms to pioneer fractional ownership of commercial real estate in India. Under the leadership of Hashim and Kunal, we believe that Property Share has become one of the largest FOP platforms in the country in terms of properties funded, active investor base as well as external capital raised. The platform serves approximately 300,000 users in more than 20 countries across 5 continents. In June 2022, it raised Rs. 347 crores in a Series B round from WestBridge Capital.
Commenting on the milestone, Kunal Moktan, Co-Founder of Property Share said, “The regulator has been very proactive in bringing this exciting new product into the regulatory mainstream that is set to make real estate more inclusive to a larger audience of retail and institutional investors. Any regulated product comes with significant benefits for investors like high-net-worth requirements for the investment manager, compliance and reporting standards, transparency, investor protection mechanisms, and marketing restrictions. We look forward to continue working closely with SEBI in launching the IPO of the first SM REIT scheme in the weeks to come.”
Hashim Khan, Co-founder of Property Share said, “With the introduction of SM REITs, the regulator has effectively introduced an entirely new asset class to the retail and institutional investor universe, continuing the march towards securitisation of real estate assets that started with REIT regulations in 2014. This is also a very proud and significant milestone for Property Share that set the foundations for this regulation more than 8 years ago through one of the first technology driven real estate investment platform in the country.”
