Mindspace Business Parks REIT with a backing of Raheja real estate group is set to launch its Rs. 4500 crore IPO in July. The document has been filed with the SEBI.
As per the offer document, promoters they would offload Rs. 3500 crore worth units while the REIT will issue fresh units worth Rs. 1000 crore. The offer opens for subscription on July 27 and closes on July 29.
Strategic investors in the issue include names like Capital Income Builder, American Funds Insurance Series - Capital Income Builder, Capital Group Capital Income Builder, Capital Group Capital Income Builder (Canada), American Funds Insurance Series - Global Small Capitalization Fund, GIC Private Limited (for and on behalf of Government of Singapore), GIC Private Limited (for and on behalf of The Monetary Authority of Singapore), Fidelity Central Investment Portfolios LLC, Fidelity Emerging Markets Equity Central Fund - Real Estate Sub, NTUC Income Insurance Co-operative Limited among others, according to the Offer Document.
The timing of the issue coincides with the stance when 10-year government yield is the lowest and the loan to value is 15%, creating huge opportunity for tapping brownfield assets as well as augment the portfolio.. The timing is perfect given the lowest interest rates in the market, real estate analysts said.
It shall be the second REIT to find its place on the bourses after the listing of Embassy Office Parks REIT in April 2019.