Mindspace REIT buys Chennai office from sponsor for ₹2,541 crore
Bengaluru: Mindspace Business Parks REIT has acquired a 2.6 million sq ft office campus in Chennai. ₹2,541 crore as the Mumbai-based company steps up acquisitions to expand its portfolio.
Mindspace REIT on Tuesday said it has acquired 100% equity stake of Sycamore Properties Pvt and Content Properties Pvt Ltd, subsidiaries of its sponsor K Raheja Corp, in Commerzone Pallikaranai on Chennai’s Pallavaram-Thoraipakkam Road.
Real estate investment trust (Reit), K Raheja Corp. had entered into a right of first offer (ROFO) agreement with the office campus, fifth being derived from the sponsor’s pipeline.
The board of directors of Mindspace Business Parks REIT approved the transaction and the privileged issuance of up to 100,000 TL. ₹675 crore, subject to unit owner and other regulatory approvals.
A reit is a trust that has an income-generating pool. Commercial real estate assets, such as office parks and shopping malls, held in a special purpose vehicle (SPV). It generates income by renting out these properties and collecting rent from tenants.
Process signs It is Mindspace REIT’s second acquisition in Chennai after its August 2022 listing. Since going public, the Reit has acquired an area valued at approximately 6.6 million m². ₹8,800 crore. Its acquisitions continue to diversify across Mumbai, Hyderabad, Pune and Chennai.
“The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and strengthens our presence in Chennai, one of India’s most resilient and fastest-growing office markets with the lowest vacancy,” said Ramesh Nair, Managing Director and Chief Executive Officer (CEO) of Mindspace REIT. This puts us in a strong position to capture future rental demand, rental advantage and long-term value creation for our unit owners, Nair added.
Commerzone Pallikaranai is a Grade A office campus spread over an area of 12.4 acres. The property currently features 1.4 million square feet of completed office space spread across 2 towers, with the remaining 1.2 million square feet under construction and to be delivered by March 2027. The campus is supported by Shell, which occupies 55% of the leased space.
once When the acquisition is completed, Mindspace REIT’s total leasable portfolio will increase from 41.6 million square meters.
Last November, Mindspace REIT had announced the acquisition of two assets in Pune and one in Mumbai from its sponsor K Raheja Corp. ₹2,916 crore.
Mindspace REIT is one of the four listed REITs in the country. The other three are Embassy Office Parks REIT, Brookfield India Real Estate Trust and Knowledge Realty Trust.
Mindspace REIT also acquired office space at Commerzone Raidurg in Hyderabad’s Madhapur district. ₹2,038 crore from a subsidiary of K Raheja Corp.
