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PropShare Distressed Opportunities Offering II

After successfully closing and deploying PDOF I, PropShare is now launching PDOF II to acquire distressed real estate opportunities available on account of the COVID-19 pandemic.

The Opportunity

The dislocation in the financial markets has created a unique opportunity to purchase Grade A assets at below market prices and yields as a result of the COVID-19 pandemic.

Realty Index is down 23% since Jan 1, 2020 with the Sensex down 6.5%

Private (PE / Debt) and Public (Banks / NBFCs) funding sources have choked

India remains the #1 destination for outsourcing for multinational companies

INR has depreciated by 5% since Jan 1, 2020 making rents and costs cheaper for MNCs with US$ revenues

26 million sf average annual demand for office over the last 3 years (12.8% y-o-y)

Multinationals have significant long term investments in people, processes and technology

Key Terms

Investors who commit to the offering will get first access to all opportunities, lower management and performance fees and better diversification.

Minimum Investment

Rs. 50 lakhs

Management Fee

0.75% vs 1.0%

Performance Fee

15.0% over hurdle rate vs 20%

Diversification

Investment will be spread across at least two properties

Key Benefits of PDOF II

PDOF investors get 25% lower fees which increases cash yield by upto 1.75%, first and direct access to distressed opportunities and diversification over at least 2 investments.

PDOF II Direct Invest
Management Fee 0.75% 1.00%
Performance Fee 15% 20%
Yield 9.50% 8-9%
Cash Yield 8.75% 7-8%
Access to distressed opportunities Guaranteed As per availability
Diversification*
First look at any investment

*Diversification only if investment exceeds Rs. 50 lakhs

Why Invest

The offering lets you take advantage of temporary market dislocation by investing in prime real estate at distress prices with lower fees and the added benefit of liquidity.

Distressed Valuations

COVID-19 has led to severe distress among developers and prime asset owners

Lower fees

PDOF investors get reduced management and performance fees

Market Timing

Historically, periods of distress have always led to the most profitable returns on investments

Liquidity

Compared to traditional funds, our tech platform allows enhanced liquidity to investors

Indicative Financial Model

Investors can be expected to make 18.1% projected IRR and 2.1x multiple of capital over a 5 year hold period.

18.1%

IRR

2.1x

MoIC

5 yrs

Hold period

Day 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total
Investment (₹50,00,000) (₹50,00,000)
Rents 4,00,000 4,00,000 4,00,000 4,60,000 4,60,000 21,20,000
Enhanced Yield 75,000 75,000
Interest On Deposit 12,000 12,000 12,000 12,000 12,000 60,000
Sale Value 80,52,550 80,52,550
Total (₹50,00,000) ₹4,87,000 ₹4,12,000 ₹4,12,000 ₹4,72,000 ₹85,24,550 ₹53,07,550

Our Recent PDOF I Investment

In Apr’20 PDOF I raised Rs 75 cr of which Rs 50 cr was deployed into Mindspace Business Park leased to Qualcomm in HITEC City, Hyderabad.

19.4%

Target IRR

2.2x

MoIC

10.0%

Yield

75 cr

Total Funds Raised

Mindspace Business Park

Mindspace Business Park

20 months lock-in

Fortune 126 Tenant

Grade A Business Park

PDOF Funds (AUM in Rs.)

Deployed
Remaining

Mindspace Funding (AUM in Rs.)

Direct Invest
PDOF I

Our Recent Exit

We recently exited our first commercial property investment in Bangalore at 18.2% IRR and 1.6x MoIC.

18.2%

IRR

1.60x

MoIC

10.5%

CAGR in property value

3 years

Hold period

What Investors Had to Say

See what investors in Umiya had to say about the investment and the platform.

BR Nagaraj

Director, CRE Target Corporation of India Pvt Ltd

"Very professional, customer centric and a very responsible approach from each one of you and the team. I am happy that I am a part of the family, shall continue my investments with your organization and happy to recommend anyone needing my support."

Sandeep Ramineni

Process Development Engineer II at Boston Scientific

"I have been discussing this idea with my friends around 2014 and was glad and surprised to see you executed successfully. So, I jumped into the first property as soon as I saw one. It was a pleasant experience working with you and the company. The communications were accurate, timely, clear and concise. I am looking forward to invest more down the line."

Dinakar Munipalli

CFO - Hydrocarbon Finder E&P LLC

"I can confidently vouch the partnership with Property Share. The returns on this investment are definitely above my expectations. Thanks to you and your team for the transparent and on time communications of all the developments associated with the investment. It definitely helped build the trust."

Investment Webinar

Watch our Chief Investment Officer describe the fund opportunity in detail.

Investment Webinar
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The Team

PropShare Capital is a SEBI registered Portfolio Manager run by an ex-Blackstone team with >$1 billion experience in commercial property investment.

$1 bn

Invested in real estate

33 mn

SF managed

13 yrs

Experience in investing

IIT / IIM

Pedigree

Hashim Khan,

Co-founder and CTO

Head of IT in a multi-billion dollar middle eastern conglomerate with >13 years experience in managing and implementing technology and processes

B. Tech from IIT Kanpur and MBA from IIM Ahmedabad

Kunal Moktan,

Co-founder and CEO

13 years experience buying, managing and selling real estate of which 8 years was with The Blackstone Group, the world’s largest real estate fund with $154 billion AUM

MBA from IIM Ahmedabad

blackstone logo

Board of Directors

Our Board comprises representatives from Lightspeed, Pravega and Beenext

Rohit Jain,

Partner, Pravega Ventures

B. Tech (CS) from IIT Delhi and MS from University of North Carolina  

Vaibhav Agrawal,

Partner, Lightspeed Venture Partners

MBA from Stanford University    

Dirk Van Quaquebeke,

Board Observer

B. Sc. from Universität Hildesheim, MBA from Copenhagen Business School