Property Share IPO: Rs 473cr SM REIT Scheme

New Delhi, Jul 15 (PTI) Property Share Investment Trust is set to mobilise Rs 473 crore through the initial public offering (IPO) of PropShare Titania, its second Small and Medium Real Estate Investment Trust (SM REIT) scheme, with the issue opening on July 21.

The public issue will conclude on July 25. The price band has been set at Rs 10 lakh-10.6 lakh per unit, Property Share Investment Trust said in a statement.

The IPO comprises a fresh issue of Titania units with no Offer For Sale (OFS) component.

Proceeds to the extent of Rs 217 crore will be used to acquire Titania SPV, Rs 232.94 crore will be provided as a loan to Titania SPV to help it repay its debenture liabilities, including the redemption of optionally convertible debentures (OCDs) along with accrued interest, and the rest will be used for general corporate purposes.

PropShare Titania comprises a 4,37,973 sq ft office space in G Corp Tech Park located in Mumbai. It is fully occupied by a diversified tenant portfolio comprising Fortune 500 companies, MNCs and blue-chip tenants, including Aditya Birla Capital and Concentrix.

In December, Property Share Investment Trust floated a Rs 353-crore IPO of PropShare Platina, its first SM REIT scheme.

SM REITs are a new asset class introduced by the Securities and Exchange Board of India (Sebi) as a sub-class within the REIT framework for assets valued between Rs 50 and Rs 500 crore. 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 lakh.

Under the framework, SM REITs are not permitted to invest in under-construction assets or land and must distribute 95 per cent of earnings as distributions to unit holders.

Kotak Mahindra Capital Company is the sole lead manager to the issue. The units are proposed to be listed on the BSE.