NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) has fully acquired Mack Soft Tech (MSTPL), which operates ‘Q-City’, a 0.81 million sq ft commercial property located in Hyderabad’s Financial District, for ₹511.8 crore.
The acquisition was executed via Horizonview Properties, an asset special purpose vehicle of Mindspace REIT. The property will be rebranded as ‘The Square, 110 Financial District’ and currently boasts a 65% occupancy rate.
The move bolsters Mindspace REIT’s presence in Hyderabad to over 16 million square feet overall.
Ramesh Nair, CEO and MD of the company, remarked, “Acquiring the property at an 11.6% discount to an independent valuation and an attractive ~9.9% cap rate showcases our disciplined capital deployment strategy and our commitment to delivering long-term value for unitholders.”
The transaction closed at a gross acquisition price of ₹495.7 crore, resulting in a capital value of ₹6,130 per sq ft, an 11.6% discount compared to the independent valuation. The asset is projected to generate a proforma net operating income (NOI) of ₹53.5 crore, representing a cap rate of approximately 9.9%, contributing a 2.6% increase to FY25 projected REIT NOI. The deal was financed entirely through debt, causing a slight increase in the loan-to-value (LTV) ratio from 24.3% to 25.1%.
Following this acquisition, Mindspace REIT’s portfolio size increases from 37.1 million sq ft to 37.9 million sq ft, while its Gross Asset Value (GAV) rises to ₹37,210 crore. Additionally, the transaction is value-accretive, enhancing the Net Asset Value (NAV) by ₹1.8 per unit.
