Mindspace REIT Aims for 93% Occupancy by FY25
Mumbai-based real estate firm Mindspace Business Parks REIT is eyeing a substantial increase in its occupancy rate to nearly 93% by the end of 2024-25 (FY25), up from the current 91.5%.
Mindspace ReitOccupancy RateData CentersReal EstateStrategic AcquisitionsReal Estate MumbaiJan 27, 2025
CEO Ramesh Nair has announced that the company expects to achieve an occupancy rate of nearly 93% by the end of 2024-25 (FY25), a notable improvement from the current 91.5%.
Ramesh Nair, the CEO of Mindspace REIT, is confident in the company's growth trajectory.
He stated, 'We are quite confident that we will start seeing distribution growth happening.
We are also looking at a right of first offer (ROFO) asset, and we are considering a third-party acquisition.
Any acquisition we make will be a strategic milestone for us in our growth journey.'
The company is committed to expanding its presence in key markets and plans to invest in high-quality, premium assets.
The ROFO and third-party acquisition strategies are seen as crucial steps to achieve these goals.
The second data center in Airoli was delivered ahead of schedule, and Nair highlighted the growing demand for data center capacity in the country.
'The country is seeing an annual addition of around 250 megawatts of capacity, and we are well-positioned to capture this demand,' he explained.
Mindspace REIT currently has five data centers in its portfolio, with two already operational.
The company is set to offer a total capacity of 285 megawatts, spanning 1.7 million square feet.
This expansion is particularly beneficial due to long-term leases, which help diversify the tenant base and reduce associated risks.
The longer lock-in periods typical of these data centers also add significant value.
In the October-December 2024 quarter (Q3FY25), the company reported robust financial performance with revenue from operations of ₹642 crore, net operating income of ₹522 crore, and a distribution of ₹315 crore.
With a market capitalization of ₹22,416 crore, Mindspace REIT has seen its shares rise by 16% over the last year.
Mindspace REIT remains focused on strategic growth, with a clear vision to enhance its market presence and deliver sustained value to its stakeholders.
Frequently Asked Questions
What is the expected occupancy rate for Mindspace REIT by the end of FY25?
Mindspace REIT expects to achieve an occupancy rate of nearly 93% by the end of 2024-25 (FY25).
What strategic moves is Mindspace REIT considering to achieve its growth goals?
Mindspace REIT is considering a right of first offer (ROFO) asset and a third-party acquisition to support its growth objectives.
How many data centers does Mindspace REIT currently have in its portfolio?
Mindspace REIT currently has five data centers in its portfolio, with two already operational.
What is the total capacity and area of the data centers Mindspace REIT is set to offer?
Mindspace REIT is set to offer a total capacity of 285 megawatts, spanning 1.7 million square feet.
What was Mindspace REIT's financial performance in Q3FY25?
In the October-December 2024 quarter (Q3FY25), Mindspace REIT reported revenue from operations of ₹642 crore, net operating income of ₹522 crore, and a distribution of ₹315 crore.
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