Mindspace REIT Acquires Chennai Commercial Asset

New Delhi, Mar 31 (PTI) Realty firm Mindspace Business Parks REIT has acquired a 26 lakh sq ft commercial asset in Chennai for Rs 2,541 crore as part of its strategy to expand business amid high demand of office spaces.

In a regulatory filing on Tuesday, the company said it has acquired 100 per cent stake in Sycamore Properties Pvt Ltd and Content Properties Pvt Ltd for Rs 2,541 crore.

Sycamore Properties and Content Properties owns a commercial asset in Chennai comprising around 2.6 million sq ft office space.

The board of the manager to Mindspace Business Parks REIT has approved the transaction and preferential issuance of up to Rs 675 crore, subject to unitholders and other regulatory approvals.

The preferential issue of units is being made at an issue price of Rs 484.89 per unit.


This acquisition is pursuant to the right of first offer (ROFO) agreement with the sponsors, K Raheja Corp and represents the fifth asset acquisition from the strong sponsor pipeline.

The asset currently includes 1.4 million sq ft of completed office space, with the remaining 1.2 million sq ft under construction and estimated delivery by March next year.

Ramesh Nair, MD and CEO of Mindspace REIT, said the acquisition of this asset is a strategic addition to portfolio and meaningfully strengthens the company's presence in Chennai.

"This acquisition positions us strongly to capture future leasing demand, rental upside and long-term value creation for our unitholders," Nair added.

Mindspace Business Parks REIT, sponsored by K Raheja Corp group, was listed on the stock exchanges in August 2020.

The REIT owns office assets in Mumbai Region, Pune, Hyderabad, and Chennai. Its portfolio has a total leasable area of 39 million sq ft, comprising 31.9 million sq ft of completed area, 3.6 million sq ft of area under construction, and 3.5 million sq ft of future development.