Information on the target
PropShare Celestia is the third SM REIT scheme launched by Property Share Investment Trust (PSIT), marking a strategic entry into Ahmedabad’s prime Nehru Nagar (SBD) micro-market. The scheme encompasses the acquisition of 207,838 square feet spread across seven floors of Stratum @ Venus Grounds, a landmark Grade A+ mixed-use commercial building. This asset is fully occupied by four major tenants, including Smartworks, EFC Limited, Paragraph Khajanchi, and a Swedish telecommunications multinational corporation, which collectively support a diversified base of ten occupiers, including four Fortune 500 companies.
The investment is characterized by high income stability, underpinned by a long Weighted Average Lease Expiry (WALE) of 6.72 years and a staggered lease profile with no expiries until FY31. The property is IGBC Platinum-certified and features advanced amenities such as 130kW solar panels and EV charging infrastructure. Financially, the asset commands a rental rate of INR 76.44 per square foot, outperforming the local market average of INR 74.00. Investors can expect a projected distribution yield of 8.1% in FY26, with consistent growth anticipated to reach 8.9% by FY29.
Industry overview in the target’s specific country
The commercial real estate sector in India has been experiencing robust growth, driven by increasing demand for office spaces from various sectors, including technology, finance, and e-commerce. The rise of flexible workspaces and co-working environments has further accelerated this trend, particularly in metropolitan areas like Ahmedabad. As businesses continue to expand their footprints, the demand for high-quality commercial properties is expected to remain strong.
Ahmedabad, as a key economic hub in Gujarat, has witnessed significant infrastructural developments and urbanization, making it an attractive destination for both domestic and international investors. The city's strategic location and connectivity to major industrial corridors have bolstered its appeal, leading to a surge in commercial real estate investments. Furthermore, government initiatives aimed at promoting ease of doing business and enhancing urban infrastructure have positively impacted the real estate landscape.
In addition, the increasing focus on sustainability and green building certifications has become a pivotal factor in the commercial real estate sector. Properties that meet these standards not only attract premium tenants but also command higher rental rates, thereby enhancing overall investment returns. The IGBC Platinum certification of PropShare Celestia further positions it favorably in this evolving market.
Overall, the commercial real estate sector in India, particularly in Ahmedabad, is poised for sustained growth, driven by favorable economic conditions, demographic …