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

Mindspace Business Parks REIT has expanded its commercial property portfolio by acquiring three key assets 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.

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

Strategic Expansion in Prime Locations

Mindspace REIT's board has approved the acquisition and a preferential issue of units worth up to Rs 1,820 crore, pending unitholders and regulatory approvals. The acquisition price of Rs 2,916 crore reflects a 6.1% discount compared to the average valuation by two independent valuers, who assessed the Gross Asset Value (GAV) at Rs 3,106 crore.

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 emphasised that these are high-quality assets with strong cash flows.

Focus on Quality and Value

Nair further explained their investment approach: "For us, it's straightforward - invest in great locations, work with great tenants, and create durable value for our unitholders." This strategy highlights their focus on quality investments and long-term value creation.

Mindspace REIT's existing portfolio includes five integrated business parks and six independent office assets spread across Mumbai, Pune, Hyderabad, and Chennai. This latest acquisition aligns with their strategy to enhance their presence in prime business districts.

The company's regulatory filing on Friday confirmed the acquisition details. The move is seen as a significant step towards consolidating Mindspace REIT's position in India's commercial real estate market.

With inputs from PTI