Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
PropShare Capital, a Category II AIF manager registered with SEBI, announced the launch of PropShare Real Estate Fund II (PREF II), the second scheme within their existing Category II Alternative Investment Fund (AIF). This follows the successful deployment of their initial commercial office fund PREF I. PREF I has been fully utilized across four office properties in Bangalore and Mumbai, all of which are fully leased to esteemed Grade A tenants such as LG, Tata Finance, and 24/7 AI.
PREF II will similarly concentrate on fully developed Class A income-generating commercial real estate properties, leased to multinational and blue-chip tenants in India's technology hubs. The fund aims to secure Rs. 500 crores in capital, with an additional Rs. 200 crores available through a green shoe option. The minimum investment requirement is set at Rs. 1 crore, aligning with AIF regulations.
The Indian office market is predicted to perform strongly due to an increase in outsourcing following the economic downturn in the West, prompting multinationals to establish new Global Capability Centres (GCCs) in India, which offers cost savings of approximately 7-8 times. Domestic tech companies are also expanding rapidly, with many large firms now urging employees to return to the office, thereby fuelling the demand for office space.
Founded in 2016 by Moktan and Hashim Khan, Propshare allows users to access institutional-grade assets with 8-10% in-place rental yields and 17-20% returns. The company handles the sourcing, due diligence, property management and sale on behalf of users, and claims to be owning, managing and exiting commercial real estate in a simple and transparent manner.
PropShare boasts a team that played a pivotal role in establishing, investing in, and expanding the office asset portfolio for The Blackstone Group, a global real estate fund and leading office investor in India. The investment team possesses a collective institutional real estate investment experience exceeding $3 billion in assets.
Kunal Moktan, CEO and Co-founder of PropShare Capital, expressed his enthusiasm for the launch, stating, "The current high inflation and interest rate environment have increased yields on all asset classes, including commercial real estate. Since yields tend to rise as asset prices fall, high-quality Class A office spaces are now available at distressed prices. Developers are facing challenges due to the burden of high-interest debt used for land acquisition and construction funding. This has forced them to raise capital by monetizing their assets. Given the subdued investment climate and a scarcity of capital providers, only the highest quality assets are currently tradable. This presents a unique, one-time opportunity for opportunistic investors to acquire quality Class A assets at yields exceeding the market rates."
The fund is primarily intended for institutional investors, High Net Worth Individuals (HNIs), family offices, and select sophisticated domestic and NRI investors. PropShare Capital's current investor base includes institutional investors, family offices, HNIs, ultra HNIs, as well as senior and mid-level management personnel from prominent tech, financial services, and consultancy companies, along with tech startup founders.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy