PropShare Titania review (May apply)

•    The trust is engaged in investing in developing premium office premises.
•    PropShare Titania is an upcoming office park at MMR-Thane, a prime market.
•    It posted steady growth in its top and bottom lines for the reported periods.
•    It is offering each unit in a price band of Rs. 10.00 lakh – Rs. 10.60 lakh.
•    The company mulls 9% annual return from FY26 to FY28 and 8.7% for FY29.
•    It’s a pure long-term story for steady rewards with capital appreciation.
•    Well-informed/cash surplus may park funds for long term.

ABOUT COMPANY:
PropShare Titania is the second scheme launched by Property Share Investment Trust, India's first small and medium real estate investment trust registered with the Securities and Exchange Board of India. PropShare Titania offers investors an opportunity to invest in various office premises across six floors of G Corp Tech Park, a Grade A+ commercial office building, located in Thane, Mumbai Metropolitan Region. PropShare Titania has a leasable area of 4,37,973 sf. PropShare Titania is fully leased to a mix of Fortune 500 companies, multinational companies (“MNCs”) and blue-chip tenants, including Aditya Birla Capital (including its subsidiaries and group companies) – an Indian MNC conglomerate operating in the BFSI sector (“Aditya Birla Capital”), Convergys India Services Private Limited (acquired by Concentrix) (“Concentrix”), a Fortune 500 Healthcare Company and a Japanese MNC Conglomerate. (Source: JLL Report). 

Further, according to the JLL Report, Thane, MMR with its strategic location and connectivity, competitive office rentals and quality standard of living has evolved to become a key office destination. (Source: JLL Report). PropShare Titania offers a projected distribution yield of 9.0% for the financial year 2026, 9.0% for the financial year 2027, 9.0% for the financial year 2028, and 8.7% for the financial year 2029. 

PropShare Titania is the second scheme under SM ReITs from Property share Investment Trust. Its first scheme was PropShare Platina, related to its Bengaluru based property development, and this one is for its property at a prime location of Thane MMR region which is said to be the most in demand premium rate realty. Investment manager has 45 employees on its payroll as of March 31, 2025.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route PropShare unit issue worth Rs. 473 cr. (approx. 4463 units at the upper cap). The company has announced a price band of Rs. 1000000.00 – Rs. 1060000 per unit. The issue opens for subscription on July 21, 2025, and will close on July 25, 2025. The minimum application to be made is for 1 unit and in multiples of 1 unit thereon, thereafter. Post allotment, shares will be listed on BSE. 

From the net proceeds of the issue, the trust will utilize Rs. 217.00 cr. for acquisition of the entire issued and paid-up capital of Titania SPV as per the share purchase agreement, Rs. 234.94 cr. for providing loan to Titania PV for redemption of debenture liability, and the rest for general corporate purposes.

The sole Lead Managers to this issue is Kotak Mahindra Capital Co. Ltd., and KFin Technologies Ltd. is the registrar to the issue. Investment manager for this issue is PropShare Investment Manager Pvt. Ltd., and Axis Trustee Services Ltd. is the trustee for this issue. Investments in Titania Units involve a degree of risk and investors should not invest any funds in the Issue unless they can afford to take the risk of losing their entire investment. For taking an investment decision, investors must rely on their own examination of the Property Share Investment Trust and the Issue.

This being the first Issue of Titania Units by the Property Share Investment Trust by way of PropShare Titania, there has been no formal market for the Titania Units of the Property Share Investment Trust. No assurance can be given regarding the active or sustained trading in Titania Units or regarding the price at which the Titania Units will be traded after listing.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, PropShare Titania has posted a total income/net profit of Rs. 31.07 cr. / Rs. 3.57 cr. (FY23), Rs. 34.67 cr. / Rs. 5.11 cr. (FY24), and Rs. 40.07 cr. / Rs. 8.97 cr. (FY25). 

The investment manager has posted a total loss of Rs. 20.02 cr. on a total income of Rs. 5.34 cr. 

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It has plans to pay 9% dividend for FY26, FY27, and FY28, and 8.7% for FY29.

COMPARISON WITH LISTED PEERS:
As per the offer document, as of the date, its first scheme PropShare Platina is the listed peer, that has failed to live up to confidence and is languishing currently. PSPLATINA has marked last 52 week high/low of Rs. 1050050 / Rs. 921111.45 and last closed at Rs. 995000 (as of July 18, 2025) - (BSE code 544295).

MERCHANT BANKER’S TRACK RECORD:
This is the 2nd SM ReITs from Kotak Mahindra in the last two fiscals including the ongoing one. The only listing that took place so far is of PropShare Platina that has posted trends as mentioned hereabove.