Mindspace REIT Expands Portfolio with Strategic Acquisitions in Mumbai and Pune
Mindspace Business Parks REIT, a leading real estate investment trust (REIT), has made significant strides in its expansion strategy by acquiring three prime commercial properties from its sponsor, K Raheja Corp, for Rs 2,916 crore. This strategic move will bolster its portfolio, increasing the total leasable area to 39 million square feet.
The acquisition includes properties in Mumbai and Pune, key cities in India's commercial landscape. Specifically, Mindspace REIT has purchased Pramaan Properties Pvt Ltd, which owns 0.45 million square feet of commercial space in Worli, Mumbai, and an office building spanning 0.1 million square feet in Pune. Additionally, the REIT has acquired Sundew Real Estate Pvt Ltd, which owns around 0.2 million square feet of premium office space in Mumbai.
These acquisitions collectively represent approximately 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 total acquisition will be completed at a gross acquisition price of Rs 2,916 crore, representing a 6.1% discount to the average of two independent valuations.
Ramesh Nair, MD and CEO of Mindspace REIT, emphasized the strategic importance of these acquisitions. “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,” he stated. Nair highlighted that these are high-quality, institutional assets with strong cash flows, further solidifying the REIT's position in the market.
For Mindspace REIT, the focus remains on investing in prime locations and working with high-caliber tenants to create long-term value for unitholders. Nair added, “For us, it's straightforward - invest in great locations, work with great tenants, and create durable value for our unitholders.”
As of September 30, Mindspace REIT had a portfolio of 38.2 million square feet of commercial space. The new acquisitions will push this figure to 39 million square feet, further diversifying the REIT's holdings. The existing portfolio consists of five integrated business parks and six independent office assets across Mumbai, Pune, Hyderabad, and Chennai.
The Board of the Manager to Mindspace 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. This move underscores the REIT's commitment to growth and its confidence in the commercial real estate market in India.
Mindspace REIT, sponsored by K Raheja Corp, one of India's leading real estate developers, continues to focus on high-quality assets in key markets. The acquisition of these properties in Mumbai and Pune not only expands the REIT's footprint but also enhances its ability to attract and retain top-tier tenants, ensuring a steady stream of income and long-term value creation for its stakeholders.
