Property share has turned into the first fractional ownership platform - FOP to get the Small and Medium Real Estate Trust (SM REIT) license from the SEBI – Securities and Exchange Board of India under the recently advised SM REIT guidelines under the name of PSIT - Property Share Investment Trust - PSIT. Property Share will now manage PSIT's investments.
In Mar'24, SEBI told the SM REIT guidelines to bring FOPs inside the administrative system as a subclass inside the REIT guidelines for resources esteemed between Rs.50 and 500 crores.
SEBI is in charge of all aspects of SM REITs, which, like REITs, have units listed on stock exchanges.
Established in 2016 by IIM, Ahmedabad batchmates Kunal Moktan and Hashim Khan, Property Share was one of the earliest platforms to spearhead fractional ownership of commercial real estate in India.
Under the administration of Hashim and Kunal, Property Offer has become one of the biggest FOP platforms in the nation as far as properties financed, dynamic financial backer base as well as outer capital raised.
The platform serves roughly 300,000 clients in excess of 20 nations across 5 continents. In June 2022, it raised Rs.347 crores in a Series B funding round from WestBridge Capital.
Expressing this significant milestone, Kunal Moktan, Co-Founder of Property Share says, “The regulator has been very proactive in bringing this exciting new product into the regulatory mainstream that is set to make real estate more inclusive to a larger audience of retail and institutional investors. 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.”
Hashim Khan, Co-founder of Property Share states, “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 securitization of real estate assets that started with REIT regulations in 2014. This is also a very proud and significant milestone for Property Share that set the foundations for this regulation more than 8 years ago through one of the first technology driven real estate investment platform in the country.”
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