by Suman Gupta
Mumbai/Bengaluru, 8th May, 2025: 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”).
[1] The above yield is based on projections in Annexure 2 “Projections” of the DKIS. Please refer to the DKIS Annexure 2 for further details. The above are projected yields and the Investment Manager does not provide any assurance or guarantee of any distributions to the Titania Unitholders. Please refer to Risk Factor 5 “Our actual results may be materially different from the Projections included in the Draft Key Information of the Scheme. Accordingly, investors should not place undue reliance on or base their investment decision solely on this information.
About SM REITs: SM REITs are a new asset cl-ass introduced by the Securities and Exchange Board of India as a sub-cl-ass 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 minimum lot size of 1 unit 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.
About Property Share: Property Share was the first firm to receive the SM REIT license after the securities market regulator Securities and Exchange Board of India notified the SM REIT regulations in March 2024. India’s 1st SM REIT scheme – PropShare Platina was listed on the BSE in December 2024 by Property Share.
Property Share was founded in 2015 by Hashim Khan and Kunal Moktan. Prior to this, Kunal spent more than 7 years at global real estate fund – The Blackstone Group, investing in Indian real estate. He holds a Post Graduate Diploma in Management from the Indian Institute of Management (Ahmedabad). Hashim has more than 9 years of experience in real estate investing at Property Share. Hashim holds a bachelor’s degree in technology from the Indian Institute of Technology (Kanpur) and a Post Graduate Diploma in Management from the Indian Institute of Management (Ahmedabad).
Along with Kunal and Hashim, Property Share’s board consists of Ben Cassey – a chartered surveyor with extensive UK real estate experience; Jagdish. C Sharma – a chartered accountant with over twenty years of experience in real estate, including nine years as vice chairman and managing director at Sobha Limited; Rachna Dikshit – a seasoned banking professional with senior roles at the Reserve Bank of India; and Ramakrishnan Seshan – an IIM-Calcutta alumnus with over twenty years of experience in retail banking, including over eleven years as head of wealth and private banking at HSBC India.
Property Share’s holding company is backed by alternative institutional investors including Westbridge Capital, Lightspeed India, BEENEXT and Pravega Ventures BEENEXT.
