Property Share receives India’s first SM REIT license; to launch IPO of the first SM REIT soon

Property Share receives India’s first SM REIT licence, to launch IPO of the first SM REIT soon

Fractional ownership platform (FOP), Property Share has received the country’s first Small and Medium Real Estate Investment Trust (SM REIT) license from the Securities and Exchange Board of India (SEBI) under the name of Property Share Investment Trust (PSIT), Kunal Moktan, Co-Founder and CEO, Property Share told Moneycontrol.

He also said that Property Share plans to launch the IPO of the first SM REIT scheme in 4-6 weeks.

In March 2024, SEBI notified the SM REIT regulations to bring FOPs within the regulatory framework as a subclass within the REIT regulations for assets valued between Rs 50 crore and Rs 500 crore. Similar to REITs, SM REITs are fully regulated by SEBI with units of each of the schemes listed on the stock exchanges.

Also Read: Small and medium REITs: Sebi launches new framework for fractional ownership of real-estate

“Property Share Investment Trust will be the country’s first SM REIT as we have received the SM REIT licence from the SEBI. We had applied for the licence in early April 2024. In the next 4-6 weeks we will launch the IPO or scheme of the first SM REIT to raise Rs 330 crore. Modalities for the same are being worked out,” Moktan told Moneycontrol.

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He also said that Property Share is also planning to list around 4-6 schemes in the next 12 months totalling Rs 1,500 crore to Rs 2,000 crore.

He said that first SM REIT will open the doors to a new asset class for investors and it will make real estate more inclusive to a larger audience of retail and institutional investors.

Also Read: India’s fractional ownership market to exceed $5 bn by 2030; Mumbai, Delhi NCR hotspots for SM-REIT investment: Report

ICICI Securities will be the merchant banker and Cyril Amarchand Mangaldas will be the legal advisor, he said.

Hashim Khan, Co-founder of Property Share said that with the introduction of SM REITs, the regulator has effectively introduced an entirely new asset class to the retail and institutional investor universe, continuing the march towards securitisation of real estate assets that started with REIT regulations in 2014.

Also Read: Jaipur: Commercial real estate platform Property Share launches pre-leased Grade A warehouse, aims to raise Rs 191 crore

“This is also a very proud and significant milestone for Property Share that set the foundations for this regulation more than 8 years ago through one of the first technology driven real estate investment platform in the country,” he said.

Founded in 2016, Property Share serves approximately 300,000 users in more than 20 countries across five continents. In June 2022, it raised Rs 347 crores in a Series B round from WestBridge Capital.