Mindspace REIT Expands Portfolio with ₹29.2 Billion Acquisition in Mumbai and Pune

Mindspace Business Parks REIT (Mindspace REIT) has made a significant move by acquiring three prime central business district (CBD) assets for ₹29.2 billion from K Raheja Corp. This strategic acquisition will bolster Mindspace REIT's portfolio, enhancing its scale, stability, and long-term growth prospects.

The board of K Raheja Corp Investment Managers, the manager to Mindspace REIT, has approved the acquisition and the preferential issue of units aggregating up to ₹18.2 billion. The acquired assets include Pramaan Properties, which owns 0.45 million sq ft at Ascent – Worli in Mumbai, and an office building spread across 0.1 million sq ft located in Kalyani Nagar, Pune. Additionally, Sundew Real Estate, which owns 0.2 million sq ft of office space at The Square Avenue 98, BKC Annex, has also been acquired.

Ramesh Nair, MD and CEO of Mindspace REIT, stated, 'These are high-quality, institutional assets, with strong cash flows, and some of the biggest names of Wall Street as anchor tenants. They enhance the scale, stability, and long-term growth of our portfolio.'

The acquisitions collectively represent 0.8 million sq ft of leasable area, valued at a gross asset value (GAV) of ₹31.1 billion by independent valuers. Post-acquisition, Mindspace REIT's portfolio will expand to 39 million sq ft. The company expects this move to deliver a net operating income (NOI) growth of 9%, distribution per unit (DPU) accretion of 1.7%, and an increase in the gross asset value (GAV) from ₹410.2 billion to ₹441.3 billion.

The acquired portfolio includes assets with committed occupancy levels ranging between 86% and 100%. Ascent–Worli, which is 86% occupied following its completion in 2025, counts Goldman Sachs, Dream11, and The Executive Centre among its tenants. The BKC Annex and Pune assets are fully leased, with the BKC Annex asset fully occupied by JP Morgan and the Pune asset 100% occupied by WeWork. The BKC Annex also offers further upside through an approved area enhancement of about 62,000 sq ft, with a planned capex of ₹490 million.

The properties carry a weighted average lease expiry (WALE) of around seven years. Following the transaction, the REIT's loan-to-value (LTV) ratio will rise marginally from 24.2% to 24.7%. In-place rents across the acquired portfolio average ₹243 per sq ft per month, with Worli commanding ₹302 per sq ft and BKC Annex ₹197 per sq ft. The Square Avenue 98 in BKC Annex has a mark-to-market potential of roughly 40%, supported by income protection of ₹99 crore annually (₹181 crore cumulative until October 2027).

Net debt associated with the acquired entities stood at ₹7.54 billion for Pramaan Properties and ₹2.17 billion for Sundew Real Estate. After adjusting for debt, deposits, and liabilities, the equity purchase consideration totals ₹18.2 billion.

Mindspace REIT's strategic acquisition not only strengthens its portfolio but also positions it to capitalize on the growing demand for high-quality office spaces in key urban centers. The company's focus on prime CBD assets with strong cash flows and marquee tenants underscores its commitment to delivering long-term value to its investors.