The fund is targeted at institutional investors, HNIs, family offices, and select sophisticated domestic and NRI investors
PropShare Capital, a SEBI-registered Category II Alternative Investment Fund (AIF) manager, announces the launch of PropShare Real Estate Fund II (PREF II), the second scheme under its current Category II Alternative Investment Fund (AIF), following the successful raising and deployment of its first commercial office fund, PREF I. Four office buildings in Bangalore and Mumbai, which are entirely leased to Grade A tenants LG, Tata Finance, and 24/7 AI, have had PREF I fully implemented.
PREF II will also focus exclusively on completed Class A income-generating commercial real estate leased to multinational and blue-chip tenants in the tech hubs of India. PREF II is targeting to raise Rs. 500 crores with a further Rs. 200 crore green shoe option, the company said via a release.
Commenting on the launch, Kunal Moktan, CEO and co-founder of PropShare Capital, said, "The current high inflation and 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. Developers are under pressure as high interest-bearing debt used to purchase land or fund construction is putting severe pressure on cash flows, forcing them to raise capital by monetising assets. Given the softness in the investing environment and lack of capital providers, only the highest quality assets are currently tradable. This has opened a unique one-time window for opportunistic investors to acquire quality Class A assets at above-market yields.”
The fund is targeted at institutional investors, HNIs, family offices, and select sophisticated domestic and NRI investors. The minimum investment is Rs. 1 crore in line with AIF regulations. PropShare Capital’s current investor base includes institutional investors, family offices, HNIs and ultra HNIs, and senior and middle management of large tech, financial services, and consultancy companies as well as founders of tech start-ups.