Property Share Investment Trust (“SM REIT”), India’s first registered Small and Medium Real Estate Investment Trust, has filed the Draft Key Information of the Trust and Draft Key Information of the Scheme (“Draft Offer Documents”) for PropShare Titania, their second scheme under the trust aggregating to up to Rs 4,720 million.
The IPO comprises of a fresh issue of Titania units with no offer for sale component (the “Issue”). This Issue is being made through the Book Building Process and in compliance with the REIT Regulations and the REIT Master Circular, wherein not more than 75% of the Net Issue shall be available for allocation on a proportionate basis to Institutional Investors and balance 25% of the Net Issue shall be available for allocation to Non-Institutional Investors, in accordance with the REIT Regulations.
Property Share will also invest a minimum 5% of the units of the scheme from its capital into the offering as the IM contribution.
PropShare Titania comprises of a 4,37,973 sf Grade A+ office space in G Corp Tech Park located in Mumbai, with ESG Certifications including LEED Platinum, WELL Health and Safety rating and BEE 5 Star certification. It is 100% occupied by a diversified tenant portfolio comprising Fortune 500 companies, MNCs and blue-chip tenants including Aditya Birla Capital and Concentrix. The tenants have occupied the building for more than 9 years and have a 3.3 year weighted average lease expiry in the building. There is a 5% annual rental escalation across all the tenant leave and licence agreements. The scheme offers investors a projected distribution yield of 9.0% for FY26, 9.0% for FY27 and 9.1% for FY28[1].
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. The asset, developed by The G Corp Group, is located close to the upcoming metro station on Line 4.
The Investment Manager to the Trust, Property Share Investment Manager Private Limited has decided to waive off all annual management expenses (including investment management fee and property management fee) for FY26 and will charge a nominal fee of 0.5% starting FY27.
The Net Proceeds are proposed to be utilized primarily for acquisition of the asset.
Kunal Moktan, Co-founder, Property Share said “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.”
Hashim Khan, Co-founder, Property Share said “PropShare Titania continues to offer investors access to a Grade A+ commercial assets at a cost-effective entry point. SM REITs are a new vehicle for real estate assets to be owned and traded, and we are proud to be embarking on this transformation with PropShare Titania.”
Property Share has an experienced team comprising 45 members having academic pedigree from leading IITs and IIMs with institutional investing experience across leading international and domestic real estate funds. 11 of its senior investing team come with a cumulative experience of 63 years in commercial real estate investing in India.
Kotak Mahindra Capital Company Limited is the sole lead manager (“BRLM”) to the Issue and KFin Technologies Ltd is the registrar to the offer. Cyril Amarchand Mangaldas is the domestic legal counsel for the Trust and Investment Manager in relation to the Issue. Axis Trustee Services Limited is the Trustee for the Issue, and PropShare Investment Manager Private Limited is the Investment Manager for the offer. Trilegal is the domestic legal counsel for the sole lead manager in relation to the Issue. The Units are proposed to be listed on BSE Limited (“BSE”) (the “Stock Exchange”).
