September 4, 2023: Mindspace Business Parks Reit, owner and developer of Grade-A office portfolio, said it had acquisition of 0.24 million square foot (msf) of leasable area at Commerzone Porur, Chennai, for Rs 181.6 crore. This acquisition helps Mindspace Reit consolidate its ownership in the project. Mindspace REIT, through its asset SPV, now owns 100% of the project with a total leasable area of 1.1 msf.
Advanced negotiations are underway with a multinational client for around 45,000 sqft of the acquired area. With this acquisition, Mindspace Reit’s total leasable portfolio area grows from 32.1 msf to 32.3 msf, cementing its commitment to enhancing its premium real estate offerings, the company said.
Mindspace Reit’s existing area of 0.9 msf at the asset has achieved committed occupancy of over 96%, with leading MNCs and prominent domestic clients. This acquisition, while helping the Reit gain full control of the project, also offers consolidation and expansion opportunities to the existing occupiers within the park.
Mindspace Reit acquired the asset at Rs 7,512 psf, including transaction costs. The deal was funded by debt. The acquisition adds Rs 0.36 per unit to the net annual value of overall portfolio.
Speaking on the acquisition, Vinod Rohira, board member, K Raheja Corp Investment Managers, and manager to Mindspace REIT, said, “This strategic acquisition aligns perfectly with our overarching strategy to exercise complete and comprehensive control of our assets, enabling holistic planning and decision making across the portfolio. The quality office property, located in one of the prominent micro-markets of Chennai, is currently occupied by marquee global MNCs as well as domestic clients, and this acquisition provides us with enhanced leasing options. The transaction in addition to bolstering our position in the Chennai market, creates value for our unitholders. With a low loan-to-value ratio, Mindspace REIT is well-positioned to explore further inorganic growth avenues as they arise.”
Sponsored by the K Raheja Corp group, Mindspace Business Parks Reit listed on the Indian bourses in August 2020. It owns office portfolios located in four key office markets of India, namely Mumbai Region, Pune, Hyderabad and Chennai. The pro-forma portfolio has a total leasable area of 32.3 msf, comprising 26.1 msf of completed area, 2.5 msf of area under-construction and 3.7 msf of future development. The portfolio consists of five integrated business parks and five independent office assets. It has a tenant base of over 200 as of June 30, 2023.
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