Mindspace REIT Expands Portfolio with Rs 2,916 Crore Acquisition in Mumbai and Pune
Mindspace Business Parks REIT, a leading real estate investment trust, has announced the acquisition of three prime commercial properties in Mumbai and Pune for Rs 2,916 crore. This strategic move is aimed at expanding its portfolio and solidifying its presence in key business districts.
The acquisition, made from K Raheja Corp, includes properties totaling 8 lakh square feet of commercial space. As of September 30, Mindspace REIT had a portfolio of 38.2 million square feet of commercial space. With this acquisition, the portfolio will increase to 39 million square feet, marking a significant milestone in the company's growth strategy.
In a regulatory filing, the company detailed the acquisition of three prime CBD (Central Business District) assets from K Raheja Corp. The Board of the Manager to Mindspace Business Parks REIT has approved the acquisition and the preferential issue of units aggregating up to Rs 1,820 crore, subject to unitholders and other regulatory approvals.
The acquired properties include Pramaan Properties Pvt Ltd, which owns 0.45 million square feet of commercial space at Worli in Mumbai, and an office building spread across 0.1 million square feet located in Pune. Additionally, Sundew Real Estate Pvt Ltd, which owns around 0.2 million square feet of premium office space in Mumbai, has also been acquired.
These acquisitions collectively represent around 0.8 million square feet of premium leasable area, valued at a Gross Asset Value (GAV) of Rs 3,106 crore by independent valuers. The acquisition will be completed at a Rs 2,916 crore gross acquisition price, representing a 6.1% discount to the average of two independent valuations.
Ramesh Nair, MD and CEO of Mindspace REIT, commented on the acquisition, stating, 'Bringing these assets into the Mindspace REIT portfolio is a strategic step in strengthening our presence in Mumbai's most sought-after CBD office districts. These are high-quality, institutional assets, with strong cash flows, and they align perfectly with our growth objectives.'
Mindspace REIT's existing portfolio consists of 5 integrated business parks and 6 independent office assets across the Mumbai region, Pune, Hyderabad, and Chennai. This acquisition further cements the company's position as a leading player in the commercial real estate market, providing high-quality office spaces in key business districts.
The acquisition not only enhances Mindspace REIT's portfolio but also reinforces its commitment to delivering value to its unitholders. With the addition of these prime properties, the company is well-positioned to capitalize on the growing demand for premium office spaces in Mumbai and Pune, contributing to its long-term growth and profitability.
Mindspace REIT continues to focus on strategic acquisitions and the development of new properties to meet the evolving needs of its clients and stakeholders. This acquisition is a testament to the company's strong financial position and its ability to identify and capitalize on opportunities in the real estate market.
As the commercial real estate sector continues to evolve, Mindspace REIT remains committed to maintaining its leadership position and delivering sustainable returns to its investors. The company's robust portfolio and strategic growth initiatives position it well for future success in the highly competitive real estate market.
