PSIT Files ₹472 Crore IPO for Second SM REIT Targeting Fully Leased Mumbai Office Asset

Property Share Investment Trust (PSIT), India’s first registered small and medium real estate investment trust (SM REIT), has submitted its draft offer document for the initial public offering (IPO) of PropShare Titania. This is PSIT’s second SM REIT scheme, following the launch of PropShare Platina in November 2024. The proposed IPO size is ₹472 crore and will consist entirely of a fresh issue of units.

The proceeds from the offering will be used primarily to acquire a 4.4 lakh square feet Grade A+ office asset located in G Corp Tech Park, Thane, Mumbai. This asset is fully leased to a mix of long-term tenants, including Fortune 500 companies, multinational corporations, and established domestic firms. Tenants such as Aditya Birla Capital and Concentrix currently occupy space in the building, and the average lease tenure stands at over nine years, with a weighted average lease expiry of 3.3 years. All lease agreements include a 5 per cent annual rental escalation clause.

PSIT has projected a distribution yield of 9.0 per cent for the financial years 2026 and 2027, and 9.1 per cent for FY28. The asset is expected to deliver stable cash flows through this period, backed by fully occupied premises and staggered lease expiry.

This IPO will be undertaken through the book-building process in accordance with the SEBI guidelines for SM REIT. As per the REIT master circular, up to 75 per cent of the issue will be allocated to institutional investors on a proportionate basis, while the remaining 25 per cent will be offered to non-institutional investors.

The underlying property, PropShare Titania, is located on Ghodbunder Road in Thane, part of the Mumbai Metropolitan Region. The location is well-connected and lies close to the upcoming Metro Line 4 station, enhancing future access and connectivity. The asset was developed by the G Corp Group, a known developer in the Mumbai region.

This marks PSIT’s second offering under the SM REIT category. The first offering, PropShare Platina, raised ₹353 crore in November 2024 and was also a fresh issue. Through these initiatives, PSIT aims to build a stable portfolio of rent-yielding office assets across key urban locations in India.

SM REIT were introduced by SEBI in March 2024 to facilitate greater participation of individual investors in income-generating commercial real estate. As a sub-category within the broader REIT framework, SM REIT are allowed to raise capital for assets valued between ₹50 crore and ₹500 crore. These investment vehicles must be backed by completed and income-generating assets, as they are not permitted to invest in under-construction projects or raw land.

SM REIT must list on Indian stock exchanges and are required to maintain a minimum unit size of ₹10 lakh. Moreover, they must distribute 95 per cent of their earnings to unit holders, ensuring regular income generation. The category aims to provide an institutional-grade real estate investment platform while maintaining transparency and regulatory oversight.

Kunal Moktan, co-founder of Property Share, has previously highlighted the role of SM REITs in offering an alternative to equity-based instruments. He has emphasized that in the current market scenario, rent-yielding commercial real estate is gaining appeal among investors looking for stability and predictable returns.

With PropShare Titania, PSIT continues its efforts to widen access to institutional-quality real estate assets for retail and non-institutional investors. The scheme’s focus on fully leased, stable-yield properties with a clear regulatory structure positions it as a viable alternative in the broader investment landscape.