India’s evolving real estate investment landscape is set to widen further as a small and medium real estate investment trust (SM REIT) moves closer to public markets with a new commercial office offering. Property Share Investment Trust has submitted draft documents for a fresh public issue linked to a fully leased office asset in Ahmedabad, signalling growing institutional appetite for fractional, income-generating commercial property exposure beyond metro cities.
The proposed issue, sized at approximately Rs 245 crore, relates to a new scheme backed by a single Grade A+ office development located within a prominent business district of Ahmedabad. Regulatory filings indicate that the offer will consist entirely of newly issued units, with proceeds earmarked for asset acquisition and associated expenses rather than promoter exits. Market participants view this structure as reinforcing alignment between investors and long-term asset performance. The underlying property spans more than 2 lakh square feet of built-up area and is currently fully occupied. Tenant composition includes multiple managed-office operators alongside a global telecommunications company, providing a diversified rental profile. Analysts tracking SM REITs note that such tenancy reduces concentration risk while offering exposure to India’s expanding flexible workspace sector, which continues to benefit from enterprise demand and decentralised office strategies. What sets this listing apart is its geographic focus. While India’s listed REIT market has historically concentrated on Mumbai, Bengaluru and Delhi NCR, this asset is located in Ahmedabad an urban centre increasingly attracting technology services, manufacturing-linked offices and back-office operations. Urban economists point out that tier-two cities with improving infrastructure and lower occupancy costs are emerging as sustainable alternatives for commercial expansion, easing pressure on larger metros.
Financial projections shared in public disclosures indicate a stabilised yield in the high single digits over the medium term. While such estimates remain subject to market conditions, analysts argue that SM REITs offer a transparent mechanism for retail and smaller institutional investors to access commercial real estate returns without direct ownership complexities. However, they caution that investors must assess lease tenures, tenant credit quality and local market absorption carefully. From an urban development perspective, the transaction reflects a broader shift towards formalising commercial real estate ownership. By bringing operational office assets into regulated investment vehicles, cities benefit from improved disclosure, governance standards and longer-term capital stewardship. Sustainability specialists add that institutional ownership can also accelerate adoption of energy-efficient retrofits, digital building management systems and lower-carbon operations. The proposed listing is expected to take place on a domestic stock exchange, subject to regulatory approvals. Market intermediaries involved in the issue include a domestic investment bank as lead manager and a listed financial services firm as registrar.
As India’s real estate capital markets mature, SM REITs are emerging as a bridge between private property ownership and public investment. For cities like Ahmedabad, this model could channel patient capital into high-quality office infrastructure while supporting more balanced, regionally distributed urban growth.
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