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19 Nov 2024
Property Share (PropShare Investment Manager Pvt. Ltd) has achieved a significant milestone by becoming the first fractional ownership platform (FOP) to receive the Small and Medium Real Estate Investment Trust (SM REIT) license from the Securities and Exchange Board of India (SEBI). The license was granted under the name Property Share Investment Trust (PSIT), with Property Share set to serve as the investment manager for PSIT.Property Share plans to launch the IPO of the first SM REIT scheme within the next 4 to 6 weeks. The IPO aims to raise approximately ₹330 crore, with the company also looking to introduce 4 to 6 additional schemes over the next year, totaling between ₹1,500 crore and ₹2,000 crore.
This landmark approval follows SEBI’s introduction of new regulations in March 2024, which amended the REIT Regulations of 2014. These regulations established a framework for the creation of SM REITs, bringing fractional ownership platforms into the regulatory fold. The new guidelines apply to assets valued between ₹50 crore and ₹500 crore, encompassing both commercial and residential properties, and are designed to enhance investor protection. SM REITs, similar to traditional REITs, are fully regulated by SEBI, with each scheme’s units listed on stock exchanges.
Kunal Moktan, co-founder of Property Share, praised SEBI’s proactive stance in integrating this new product into the regulatory mainstream, which he believes will make real estate investment more accessible to a broader range of retail and institutional investors. He highlighted that regulated products offer numerous benefits, including stringent compliance, transparency, investor protection mechanisms, and marketing restrictions. Moktan expressed eagerness to continue collaborating with SEBI as Property Share prepares to launch the initial public offering (IPO) of the first SM REIT scheme in the coming weeks.
Founded in 2016 by IIM Ahmedabad alumni Moktan and Hashim Khan, Property Share was one of the pioneers of fractional ownership in India’s commercial real estate sector. The platform has since grown to a user base of around 300,000 across more than 20 countries. In June 2022, the company secured ₹347 crore in a Series B funding round led by WestBridge Capital. Khan noted that the introduction of SM REITs represents a significant advancement in the securitization of real estate assets, marking the emergence of a new asset class for both retail and institutional investors.
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