The REIT IPO of Property Share Investment Trust was fully subscribed on the final day of bidding at 1.19 times at close.
Property Share is launching an REIT IPO for PropShare Platina, which is the first scheme under PSIT. Small and medium REITs are a new asset class regulated by the Sebi as a sub-class within the REIT framework for assets valued between Rs 50-500 crore.
The offer proceeds are proposed to be utilized primarily for acquisition of the Prestige Tech Platina asset by the Platina SPVs with the remaining for other general corporate purposes.
PropShare Platina spans 246,935 sq. ft. of office space within Prestige Tech Platina, a LEED Gold-certified building situated on Bangalore’s Outer Ring Road (ORR). The property is set to be fully leased to a leading US-based tech firm under a fresh 9-year lease, featuring a weighted average lock-in period of 4.6 years and a 15% rent escalation every three years.
The scheme projects an FY26 distribution yield of 9%. Outer Ring Road, Bangalore’s largest office market, accounts for 34% of the city’s total office stock, according to Jones Lang LaSalle. The area hosts prominent multinational corporations, including Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, and Wells Fargo.For the first scheme, the investment manager, PropShare Investment Manager has decided to waive off all annual management expenses for FY25 and FY26 and will charge a nominal fee of 0.25% in FY27 and 0.3% from FY28 onwards.Property Share will also invest a minimum 5% of the units of the scheme or Rs 17.6 crore 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.
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