The Property Share Investment REIT IPO shares will make their debut on the BSE platform on Tuesday. Before the IPO, the company's shares had no GMP on the grey market.
On the final day of bidding, the REIT IPO of Property Share Investment Trust was fully subscribed at 1.19 times the closing price.
Property Share is preparing a REIT IPO for PropShare Platina, the first PSIT scheme. Small and medium REITs are a new asset class regulated by the Sebi as a sub-class of the REIT framework for assets valued between Rs 50 and Rs 500 crore.
The offer proceeds are proposed to be used principally for the Platina SPVs' acquisition of the Prestige Tech Platina asset, with the remainder going toward other general business purposes.
PropShare Platina occupies 246,935 square feet of office space within Prestige Tech Platina, a LEED Gold-certified skyscraper located on Bangalore's Outer Ring Road. The property is set to be fully leased to a top US-based IT corporation on a new 9-year lease with a weighted average lock-in duration of 4.6 years and a 15% rent increase every three years.
The scheme anticipates a 9% distribution yield in fiscal year 26. According to Jones Lang LaSalle, the main office market in Bangalore is Outer Ring Road, which represents for 34% of the total office stock. Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, and Wells Fargo are among the significant global firms that call the area home.
For the first scheme, PropShare Investment Manager has chosen to waive all yearly management expenditures for FY25 and FY26, and will levy a minimal fee of 0.25% in FY27 and 0.3% beginning in FY28.
Property Share would additionally provide a minimum of 5% of the scheme's units, or Rs 17.6 crore from its capital, to the offering as an IM contribution. The IPO is a completely new offering of Platina units, with no offer for sale component.
