Mindspace Business Park REIT has acquired 0.24 million square feet (MSF) of leasable area at Commerzone in Porur, Chennai for a consideration of Rs 181.6 crore, including the transaction cost.

The company said that the acquisition will help it to 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 square feet of the acquired area. With this acquisition, Mindspace REIT’s total leasable portfolio area grows from 32.1 MSF to 32.3 MSF.

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 Mindspace REIT gain full control of the project, also offers consolidation and expansion opportunities to the existing occupiers within the park.

The deal has been funded by debt. Mindspace REIT acquired the asset at an acquisition price of Rs 181.6 crore (Rs 7,512 per square feet), including transaction costs. The acquisition adds Rs 0.362 per unit to the NAV of overall portfolio Vinod Rohira, board member, K Raheja Corp Investment Managers, manager to Mindspace REIT, said, “This strategic acquisition aligns perfectly with our strategy to exercise complete and comprehensive control of our assets. 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.”

Mindspace Business Parks REIT, sponsored by K Raheja Corp Group, listed on the Indian bourses in August 2020. It owns office portfolios located at Mumbai, Pune, Hyderabad and Chennai and is one of the largest Grade A office portfolios in India.
Mindspaces portfolio consists of 5 integrated business parks and 5 quality independent office assets.

The pro-forma portfolio has a total leasable area of 32.3 MSF comprising of 26.1 MSF of completed area, 2.5 MSF of area under construction and 3.7 MSF of future development. It has over 200 tenants as of June 30, 2023. Meanwhile, the company has appointed Ramesh Nair as its new CEO with effect from September 01.

The company’s net sales stood at Rs 339.80 crore in June 2023, up 10.79% from Rs 306.70 crore in June 2022. A recent JLL report said that India’s office sector offer $61 billion REIT listing chances. Bengaluru holds the largest share of office space at 32% followed by Delhi NCR at 15% and Mumbai at 14%.