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Property Share Investment Trust SM REIT IPO
On 2nd December 2024, India's first registered small and medium real estate investment trust will open for subscription - Property Share Investment Trust (PSIT). Property Share is launching a REIT IPO for PropShare Platina. It 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. Let us look at all the required details.
Below are the key details related to the PSIT REIT:
- Issue Size: Rs 352.91 crore
- Price Band: Rs 10,00,000 - Rs 10,50,000
- Lot Size: 1 Share
- Issue Details: Only Fresh Issue
- Minimum Investment: Rs 10,50,000
Property Share Investment Trust IPO: Important Details
Business Overview
The Property Share Investment Trust (REIT) is India’s first registered Small and Medium Real Estate Investment Trust. The object and purpose of the REIT is to carry on the activity of a small and medium real estate investment trust through one or more Schemes, as permitted under the REIT Regulations. Each Scheme may have its own investment objectives, in accordance with the REIT Regulations. The investment of the Schemes shall only be in completed and revenue-generating real estate properties through SPVs.
PropShare Platina
The PropShare Platina is the first scheme of the REIT and includes commercial office spaces in Bangalore.
Investment Objective
The REIT aims to make investments or re-investments, including in completed and revenue-generating real estate properties under Schemes through SPVs and other investments (including liquid assets and any business of operation and maintenance of any REIT Assets). The REIT will also hold amounts pending investment or distribution (Net Distributable Cash Flows distributed to the Unitholders of each Scheme) or as a reserve of the Scheme’s anticipated obligations.
Obligations
The REIT is managed by a dedicated and experienced team of employees of the Investment Manager, who have a rich experience in the real estate industry or real estate fund management.
h3>Property Share Investment Trust IPO: Listed Peers
Currently, there are no listed schemes under the small and medium real estate investment trusts in India. Accordingly, it is not possible to provide an industry comparison of the PropShare Platina.
Property Share Investment Trust : Financials
No Financial data is available as this Trust was started only in August 2024, and this is the maiden public offer from them.
Property Share Investment Trust: Income Distribution
The trust will follow the income distribution policy per the applicable rules and regulations and the Income Tax Act.
Property Share Investment Trust IPO: Risks
Below are some of the risks associated with the REIT:
- Their revenues, results of operations, cash flows and financial condition may be adversely affected by low occupancy and rent levels of their commercial office spaces.
- Any future proposals to upgrade existing projects in their SPVs may be exposed to several risks and uncertainties which may adversely affect business, financial condition, results of operations, and cash flows.
- Tenant leases across their SPVs are subject to certain risks of default, non-renewal, early termination, adequate stamp duty payment, regulatory or legal proceedings, or changes in applicable laws or regulations, thereby impacting leasing and other income.
- They may be subject to risks inherent in acquiring ownership interests in properties that are part of a larger development or that share or have common areas.
The REIT will close on 4 December and the expected listing is on 9 December.
