Prosus Sees Significant IPO Upside in India...
26 Jun, 2025
Property Share Investment Trust (PSIT), India’s pioneering platform for small and medium real estate investment trusts (SM REITs), has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of its second SM REIT scheme, PropShare Titania. The move marks a significant step forward in democratizing access to high-quality commercial real estate for individual investors, as PSIT continues to innovate within the rapidly evolving Indian real estate investment landscape.
PropShare Titania: A Prime Mumbai Office Asset
PropShare Titania, the centerpiece of this IPO, comprises approximately 4.4 lakh square feet of grade A+ office space located in G Corp Tech Park, Thane, Mumbai. The asset enjoys a strategic location on the main Ghodbunder Road, within the Mumbai Metropolitan Region, and benefits from proximity to an upcoming metro station on Metro Line 4. Developed by the reputable G Corp Group, the property is fully leased to a diversified roster of blue-chip tenants, including Fortune 500 companies, multinational corporations, and industry leaders such as Aditya Birla Capital and Concentrix.
The building boasts a robust occupancy history, with tenants having occupied the premises for more than nine years and a weighted average lease expiry of 3.3 years. Additionally, all tenant agreements feature a 5% annual rental escalation, ensuring stable and growing income streams for investors.
Structure and Utilization of Proceeds
The PropShare Titania IPO aims to raise up to Rs 472 crore through a completely fresh issue of units. The net proceeds from the offering will be primarily utilized for the acquisition of the G Corp Tech Park asset, further strengthening PSIT’s portfolio of income-generating commercial properties.
The issue will be conducted via the book-building process and in strict compliance with SEBI’s REIT regulations and the REIT master circular. In line with regulatory requirements, no more than 75% of the net issue will be allocated to institutional investors on a proportionate basis, while the remaining 25% will be available for allocation to non-institutional investors.
SM REITs: A New Era in Indian Real Estate Investing
The SM REIT framework was introduced by SEBI in March 2024 as a sub-class within the broader REIT ecosystem, targeting assets valued between Rs 50 crore and Rs 500 crore. SM REITs are required to list their units on stock exchanges, but with a minimum lot size of one unit valued at Rs 10 lakh, making them accessible to affluent individual investors.
Importantly, SM REITs are restricted from investing in under-construction assets or land, focusing solely on completed, income-generating properties. They must distribute at least 95% of their earnings to unit holders, ensuring a steady flow of income to investors and enhancing transparency in the sector.
PSIT was the first firm in India to receive an SM REIT licence following SEBI’s regulatory notification, and its inaugural scheme, PropShare Platina, raised Rs 353 crore in November 2024, setting a precedent for the market.
Market Impact and Future Prospects
The launch of PropShare Titania’s IPO is expected to further catalyze the growth of the SM REIT segment in India. By offering a regulated, transparent, and liquid investment vehicle backed by high-quality commercial real estate, PSIT is paving the way for broader participation in the sector, especially among individual investors seeking alternatives to traditional equity and debt instruments.
Industry experts believe that the continued success of SM REITs could unlock significant capital for India’s commercial real estate market, improve asset quality, and enhance investor confidence. With stable yields, professional management, and regulatory oversight, SM REITs are poised to become a mainstay in the portfolios of discerning investors.
Conclusion
PSIT’s Rs 472 crore IPO for PropShare Titania underscores the growing appeal and maturity of India’s SM REIT market. By providing access to premium, rent-yielding commercial assets in prime locations, PSIT is not only expanding its own footprint but also setting new benchmarks for transparency, liquidity, and investor protection in real estate investing. As the market evolves, initiatives like PropShare Titania are likely to play a pivotal role in shaping the future of real estate investment in India, offering compelling opportunities for both institutional and individual investors.
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