PropShare Capital launches second fund PREF II; plans to raise Rs 500 crore

October 19, 2023

NEW DELHI: PropShare Capital, a SEBI-registered category-II AIF manager, has launched PropShare Real Estate Fund II (PREF II), the second scheme under its existing category II Alternative Investment Fund (AIF).

PREF II is targeting to raise Rs. 500 crores with a further Rs. 200 crore green shoe option. It will focus on completed Class A income-generating commercial real estate leased to multinational and blue-chip tenants in the tech hubs of India.

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.

Kunal Moktan, CEO and co-founder of the company 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 company previously raised and deployed its first commercial office fund PREF I across four office assets in Bengaluru and Mumbai, which are 100% leased.

  • Published On Oct 19, 2023 at 03:00 PM IST

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