Online real estate platform PropShare Capital has introduced its second real estate fund, PropShare Real Estate Fund II (PREF II), as part of its alternative investment fund (AIF) strategy. PREF II, a category-II AIF, seeks to raise ₹500 crore with a green-shoe option of ₹200 crore. The fund will be dedicated to investing in completed Class A rent-generating commercial properties, primarily in India’s tech hubs, leased to multinational and blue-chip tenants.
In its previous fund, PREF I, launched in March 2021, PropShare Capital aimed for ₹700 crore but managed to raise only ₹75 crore. Through PREF I, the company invested in four commercial properties in Bangalore and Mumbai, all of which are leased to prominent companies, including LG, Tata Finance, and 24/7 AI.
Kunal Moktan, CEO and co-founder of PropShare Capital noted, “The current high inflation and high-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. This has opened a unique one-time window for opportunistic investors to acquire quality Class A assets at above-market yields.”
The fund’s limited partners will encompass institutional investors, family offices, high net-worth individuals (HNIs), and resident and non-resident Indians.
PropShare Capital boasts notable investors such as Westbridge Capital, LightSpeed Venture Partners, Pravega, and BEENEXT. The company recently secured $47 million in a Series B funding round led by WestBridge Capital in June 2022.
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PropShare Capital, founded in 2016 by Kunal Moktan and Hashim Khan, simplifies real estate investment by providing access to institutional-grade assets with competitive rental yields and returns. The platform handles sourcing, due diligence, property management, and sales on behalf of users, streamlining the process of owning, managing, and exiting commercial real estate.
