NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) has successfully acquired a 2.6 million sq ft grade-A office property in Chennai for approximately ₹2,541 crore, enhancing its foothold in the southern market.
The acquisition involves obtaining 100% equity in the entities that own Commerzone Pallikaranai, situated on the Pallavaram-Thoraipakkam Road (PTR) corridor, a significant office micro-market in Chennai. This transaction has received board approval, along with a planned preferential unit issuance of up to ₹675 crore, pending regulatory and unitholder approvals.
The asset features around 1.4 million sq ft of finished office space and 1.2 million sq ft under development, slated for completion by March 2027. The completed section is currently about 70% occupied.
With an average lease term of approximately 11 years, the property boasts in-place rentals of around ₹63 per sq ft per month. Following this acquisition, the REIT’s loan-to-value ratio will rise to about 28% from the previous 25.6%, while still maintaining a conservative leverage position.
This marks the second acquisition for Mindspace REIT in Chennai since its listing, bringing its total acquisitions to approximately 6.6 million sq ft, with a combined value nearing ₹8,800 crore.
After this acquisition, the REIT’s portfolio will grow to around 41.6 million sq ft from 39 million sq ft, with the gross asset value projected to reach about ₹46,700 crore. Additionally, Chennai’s share in the REIT’s portfolio will increase to roughly 9% by area, up from 3% previously.
This deal was executed under a right of first offer (ROFO) agreement with the sponsor, K Raheja Corp.
