Mindspace Business Parks REIT today filed its Offer Document with the Securities and Exchange Board of India (SEBI) for the public issue that will help it raise Rs 4,500 crore. The real estate investment trust, backed by K Raheja Group and private equity firm Blackstone, is aiming to raise Rs 1,000 crore through a fresh issue and Rs 3,500 crore from an offer for sale (OFS) where Blackstone and K Raheja Group will part with some part of their holdings. Mindspace Business Parks REIT filed its draft prospectus in December last year and a revised prospectus was filed in June.
According to the document filed with the market regulator, Mindspace Business Parks REIT is looking to raise Rs 1,250 crore from strategic investors. Mindspace Business Parks REIT will be the second public issue of a REIT after Embassy Office Parks REIT raised close to Rs 5,000 crore last year. Capital Income Builder, American Funds Insurance Series – Capital Income Builder, Capital Group Capital Income Builder, Capital Group Capital Income Builder (Canada), American Funds Insurance Series – Global Small Capitalization Fund, GIC Private Limited (for and on behalf of Government of Singapore), GIC Private Limited (for and on behalf of The Monetary Authority of Singapore), Fidelity Central Investment Portfolios LLC, Fidelity Emerging Markets Equity Central Fund – Real Estate Sub, and Fidelity Investment Trust: Fidelity Emerging Asia Fund are some of the strategic investors.
Mindspace Business Parks REIT, with a total leasable area of 29.5 msf and over 170 tenants. Although the investment trust was able to collect 99.4% of their Gross Contracted Rentals for the month of March 2020, properties were not fully occupied by their tenants for the months of April and May 2020. In financial year 2020, Mindspace Business Parks REIT earned Rs 1,600 crore from operations. The revised draft prospectus filed last month by the company says a 10.6% growth in revenue from operations is expected this fiscal while the same is expected to clock at 23% in financial year 2022.
Some of the marquee tenants of Mindspace include Accenture, Qualcomm, Barclays, JP Morgan, UBS, and Amazon. The bid-offer opens on July 27 and closes on July 29. Between financial year 2017 and financial year 2020, the company leased 7.6 msf of office space; achieved average re-leasing spreads of 28.9% on 3.0 msf of re-leased space and leased 4.6 msf of new area (including Pre-Leased Area and Committed Area, as of March 31, 2020) to 60 tenants; achieved re-leasing spread of 23.1% for 1.1 msf of area re-leased during fiscal year 2020.