WestBridge-backed PropShare Capital launches second real-estate fund
₹500 crore with a green-shoe option of ₹200 crore and will invest it across completed Class A rent-generating commercial properties leased to multinational and blue-chip tenants in India’s tech hubs. For its previous fund PREF I, launched in March 2021, PropShare Capital aimed to raise ₹700 crore but could only put together ₹75 crore. Through the maiden vehicle it invested in four commercial properties in Bangalore and Mumbai, which have been leased out to companies such as LG, Tata Finance and 24/7 AI.
“The current high-inflation and high-interest-rate environment has increased yields on all asset classes including commercial real estate. Since yields are inversely proportional to asset prices, this has led to high quality Class A offices being available at distressed prices," said Kunal Moktan, CEO and co-founder, PropShare Capital. “This has opened a unique one-time window for opportunistic investors to acquire quality Class A assets at above-market yields," he added.
The fund's limited partners will include institutional investors, family offices, high net-worth individuals (HNIs), and resident and non-resident Indians. The realty investment platform counts Westbridge capital, LightSpeed Venture Partners, Pravega and BEENEXT as its investors. It last raised funds in June 2022, when it secured $47 million (around ₹376 crore then) as part of its Series B funding round led by homegrown private equity player WestBridge Capital at a valuation of $170 million.
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