PropShare Titania is the second scheme of the **Property Share Investment Trust (PSIT)**, distinguished as India’s first SEBI-registered **Small and Medium Real Estate Investment Trust (SM REIT)**. Listed on the **BSE** on **August 4, 2025**, the scheme operates as a specialized vehicle for owning and managing institutional-grade commercial office space. The scheme’s primary objective is to provide unitholders with stable, quarterly rental yields and long-term capital appreciation through a **non-leveraged** ownership model of high-quality assets in the Mumbai Metropolitan Region (MMR). --- ### **Asset Portfolio: G Corp Tech Park, Thane** The scheme’s sole underlying asset is a significant, high-specification portion of **G Corp Tech Park**, a **Grade A+** commercial development located on **Ghodbunder Road, Thane**. | Feature | Details | | :--- | :--- | | **Subject Property** | Floors **5 (part), 7, 9, 11, 12, and 13** | | **Total Leasable Area** | **4,37,973 sq. ft.** | | **Occupancy Status** | **100% Occupied** (as of March 2026) | | **WALE (Weighted Average Lease Expiry)** | **3.55 Years** (as of March 2026) | | **Ownership Structure** | **100%** via SPV (**Eranthus Developers Pvt Ltd**) | | **Sustainability Credentials** | **LEED Platinum (O&M)**, **WELL Health-Safety Rating**, **BEE 5-Star** | The property is strategically positioned approximately **300 meters** from the upcoming **Kasarvadavali Metro Station (Line 4)**, which is expected to be operational by **December 2025**, significantly enhancing the asset's connectivity and long-term value. --- ### **Tenant Profile & Sector Exposure** The asset maintains a diversified base of multinational and blue-chip tenants, characterized by high "tenant stickiness" and a history of internal expansion. | Sector | Occupancy % | Key Tenants (Representative) | | :--- | :--- | :--- | | **BFSI** | **51.9%** | Aditya Birla Capital & subsidiaries | | **Technology** | **31.4%** | Concentrix (formerly Convergys), Virtusa | | **Healthcare & Lifesciences** | **16.7%** | Fortune 500 Healthcare Company | --- ### **Financial Performance & Distribution Policy** PropShare Titania follows a disciplined financial model focused on maximizing **Net Distributable Cash Flows (NDCF)**. * **Revenue & Margins:** For FY26, the scheme generated **Rs. 145.38 Million** in revenue from operations with a robust **Net Operating Income (NOI) margin of 89.11%** and an **EBITDA margin of 90.97%**. * **Distribution Mandate:** The Trust is mandated to distribute **100% of NDCF** to unitholders at least once every quarter. * **Historical Distributions:** * **March 31, 2026:** Rs. 23,523.29 per unit (**Rs. 10.50 Crore** total) * **December 31, 2025:** Rs. 24,046.03 per unit (**Rs. 10.73 Crore** total) * **September 30, 2025:** Rs. 15,159.46 per unit (**Rs. 6.76 Crore** total) * **Yield:** As of November 2025, the scheme delivered a **9.00% annualized NDCF yield** on the IPO price. --- ### **Capital Structure & Management Fees** The scheme transitioned to a **non-leveraged model** in **August 2025** after utilizing IPO proceeds to fully repay prior borrowings from **HDFC Bank**. * **IPO Details:** Raised **₹472.97 crore** by issuing **4,462 units** at **₹1,060,000** per unit. * **Valuation:** As of **March 31, 2026**, the **NAV per Unit (Fair Value)** stood at **Rs. 1,076,351.41**, based on an independent market value of **INR 4,986.27 million** for the asset. * **Fee Structure:** * **Scheme Management Fee:** **0%** for FY25-26; up to **0.25%** in FY27; **0.30%** from FY28 onwards. * **Transaction Fees:** **1.5%** acquisition fee (one-time **1.0%** charged for initial acquisition); up to **3%** divestment fee. --- ### **Market Dynamics & Growth Strategy** The investment strategy capitalizes on the tightening supply of **Grade A+** office spaces in the Thane micro-market. * **Supply-Demand Imbalance:** While overall Thane vacancy is higher, **Grade A+** assets maintain a low vacancy rate of approximately **2.4%**. New completions for Grade A+ space are negligible through 2028, with the only major competitor (**Hiranandani Centaurus**) already **~30% pre-leased**. * **Rental Appreciation:** The scheme targets a **5-year rent CAGR of 5.6%**, significantly outperforming the broader Grade A market (projected at 1-1.5%). * **Mark-to-Market (MTM) Opportunity:** Management identifies a **10.3% MTM opportunity by FY2029**, as current leases expire and reset to higher market rates. * **Exit Strategy:** Capital appreciation is sought through the eventual sale of the asset or the SPV, subject to unitholder approval. --- ### **Risk Factors & Contingent Liabilities** Investors should consider the following regulatory, legal, and operational risks: **1. Regulatory & Governance Matters** * **Trustee Oversight:** SEBI issued a **Show Cause Notice** to the Trustee (**Axis Trustee Services Limited**) on **May 30, 2025**, regarding alleged oversight lapses in an unrelated REIT. The matter is pending. * **Accounting Standards:** Auditors have noted an **Emphasis of Matter** regarding the classification of **"Unit Capital"** as **Equity** to comply with REIT-specific regulations. **2. Litigation & Tax Disputes** The **Titania SPV** is currently contesting tax demands totaling **₹71.01 crore**: * **Income Tax (AY 2017-18):** **₹22.18 Cr** regarding disallowed interest expenses. * **Withholding Tax (AY 2018-19):** **₹40.78 Cr** regarding share transfers to NVD Holdings. * **Transfer Pricing:** **₹8.05 Cr** currently before the Dispute Resolution Panel. **3. Operational Risks** * **Concentration Risk:** Revenue is highly dependent on a single asset and a few large tenants in the **BFSI** and **Tech** sectors. * **Liquidity:** As an SM REIT, secondary market liquidity for units on the **BSE** may be limited compared to larger REITs or equity stocks. * **Geological Risk:** The property is located in **Seismic Zone II** (low to moderate earthquake risk). --- ### **Governance & Management Framework** The scheme is managed by **PropShare Investment Manager Private Limited (PIMPL)**, with **Axis Trustee Services Limited** acting as the Trustee. A **Risk Management Committee** has been established to oversee financial, operational, **ESG**, and **Cyber Security** risks, with a mandatory policy review every **two years** to ensure business continuity and regulatory compliance.