Fractional ownership platform Property Share gets maiden SEBI license for SM REIT
commercial real estate investment platform Property Share has received the Small and Medium Real Estate Investment Trust (SM REIT) license from the Securities and Exchange Board of India (SEBI) under the newly notified SM REIT regulations.
The fractional ownership platform (FOP) has received the capital market regulator’s approval under the name of Property Share Investment Trust (PSIT) and has become the first entity to secure the same. Property Share will become the investment manager to PSIT.
“Any regulated product comes with significant benefits for investors like high-net-worth requirements for the investment manager, compliance and reporting standards, transparency, investor protection mechanisms, and marketing restrictions. We look forward to continue working closely with SEBI in launching the IPO of the first SM REIT scheme in the weeks to come,” said Kunal Moktan, co-founder of Property Share
The company is now planning to file papers for its first SM REIT scheme for an asset spread over 250,000 sq ft in Bengaluru in the next two weeks. It is looking to list the fully-leased asset valued at Rs 330 crore by the end of September following the regulator’s approval. Moktan told ET.
This commercial property is fully leased to a US-based technology company and the asset’s annual yield is 9%.
“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
