Mindspace REIT Expands Portfolio with Rs 2,916 Crore Acquisition of Office Spaces in Mumbai and Pune

Mindspace Business Parks REIT has expanded its portfolio by acquiring three major commercial properties from K Raheja Corp for Rs 2,916 crore. These properties, located in Mumbai and Pune, cover an area of 8 lakh square feet. This acquisition increases Mindspace REIT's total commercial space from 38.2 million square feet to 39 million square feet.

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The acquisition includes Pramaan Properties Pvt Ltd, which owns 0.45 million square feet of commercial space in Worli, Mumbai, and an office building of 0.1 million square feet in Pune. Additionally, Sundew Real Estate Pvt Ltd, with approximately 0.2 million square feet of premium office space in Mumbai, is part of the deal.

Strategic Expansion in Key Locations

The Board of the Manager to Mindspace REIT has approved this acquisition along with a preferential issue of units worth up to Rs 1,820 crore. This is subject to approvals from unitholders and regulatory bodies. The acquisition price is Rs 2,916 crore, which is a 6.1% discount compared to the average valuation by two independent valuers.

Ramesh Nair, MD and CEO of Mindspace REIT, stated: "Bringing these assets into the Mindspace REIT portfolio is a strategic step in strengthening our presence in Mumbai's most sought-after CBD office districts." He emphasized that these are high-quality assets with strong cash flows.

Portfolio Growth and Value Creation

Nair further explained their investment strategy: "For us, it's straightforward - invest in great locations, work with great tenants, and create durable value for our unitholders." The newly acquired properties represent around 0.8 million square feet of premium leasable area valued at Rs 3,106 crore by independent valuers.

Mindspace REIT's existing portfolio includes five integrated business parks and six independent office assets across Mumbai, Pune, Hyderabad, and Chennai. This strategic acquisition aims to bolster their presence in key central business districts.

The company announced the acquisition through a regulatory filing on Friday. The move aligns with their strategy to enhance their portfolio with institutional-grade assets that promise robust returns.

With inputs from PTI