Mindspace REIT pre-leases Hyderabad building to Chalet Hotels for ₹350 crore luxury hotel
BENGALURU: Mindspace Business Parks REIT, which owns and develops Class A office assets, on Wednesday said it has pre-leased a 530,000 sq ft building at Mindspace Madhapur campus in Hyderabad to Chalet Hotels Ltd for a luxury hotel project.
Development requires an investment ₹350 crore and is expected to be completed by the end of FY28.
The mixed-use building will include a 330-room hotel and ancillary commercial space. The property will be developed through Mindspace REIT’s special purpose vehicle K. Raheja IT Park (Hyderabad) Ltd (KRIT).
Chalet Hotels is backed by K Raheja Corp, which is also the sponsor of Mindspace REIT.
Mindspace Madhapur, among the oldest and largest integrated business park campuses in Hyderabad, has over 13 million square feet of world-class office space. The campus is currently home to three Westin-branded hotels and Inorbit Mall and is home to more than 100,000 professionals.
GYO said the upcoming project will be the third hotel on campus.
“This development reflects our strategy of creating long-term value by strengthening the ecosystem within our existing business parks through high-quality, complementary uses,” said Ramesh Nair, chief executive officer and managing director of K Raheja Corp Investment Managers Pvt Ltd.
“By partnering with Chalet Hotels, we combine our development and asset management capabilities with a proven hospitality platform. Long-term structure with built-in increments provides meaningful revenue visibility, while the addition of luxury accommodation further enhances Mindspace Madhapur’s appeal for residents,” Nair added.
According to the agreement, KRIT will construct the building, while Chalet Hotels will undertake the internal arrangements and commissioning of the hotel and related facilities.
Chalet Hotels owns, develops, manages and operates high-end hotels in India with a portfolio of over 3,300 keys. Its properties include Athiva Resort & Spa, Khandala; JW Marriott Sahar in Mumbai; Westin Mumbai Powai Lake; and Westin Rishikesh.
Mindspace REIT is one of four publicly traded office real estate investment trusts (Reits) in the country. The other three are Embassy Office Parks REIT, Brookfield India Real Estate Trust and Knowledge Realty Trust.
Its portfolio consists of 31.9 million m2 of completed area, 3.6 million m2 under construction and 3.5 million m2 of future development potential across five integrated business parks and nine independent offices. Net operating income increased by 29% year-on-year ₹671 crore in the December quarter.
