1.82-Mft Office Space Sale In Hyd: Mindspace Reit Seals Rs 2,038-Cr Realty Deal
Post-acquisition, the company’s footprint in Hyderabad rose to 15 mn sft
1.82-Mft Office Space Sale In Hyd: Mindspace Reit Seals Rs 2,038-Cr Realty Deal
Located in Hyderabad’s prime central business district, this Grade A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy -- Ramesh Nair, CEO, Mindspace REIT
Hyderabad: Mindspace Business Parks Real Estate Investment Trust (REIT), sponsored by K Raheja Corp Group, on Wednesday announced the acquisition of 1.82 mn sft office space of Sustain Properties in the city, at an enterprise value of Rs2,038 crore. Mindspace REIT will acquire 100 per cent equity in Sustain Properties Pvt Ltd at an equity value of Rs 613 crore. The deal is as a part of its plan to expand rent-yielding portfolio, says the company in a communiqué to the bourses. The shareholders of Sustain Properties will get units in Mindspace REIT as consideration and the deal may close by March.
Speaking on the acquisition, Ramesh Nair, CEO, Mindspace REIT, said: “Located in Hyderabad’s prime central business district, this Grade-A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy.”
Mindspace REIT in the regulatory filing informed that the board has approved acquisition of 100 per cent equity shareholding of Sustain Properties holding about 1.82 million (18.2 lakh) square feet of leasable area at ‘Commerzone Raidurg’, located at Raidurg in Hyderabad, from the shareholders of Sustain.” The acquisition follows the Right of First Offer (ROFO) agreement entered by Mindspace REIT with the sponsors.
The 1.82 million sft office space acquired from Sustain Properties, part of a larger 2.8 million sft development, is occupied by Qualcomm.
“With a marquee tenant and mark to market potential, it reinforces our position as a leader in India’s commercial real estate sector,” Nair added.
Post-acquisition, Mindspace REIT’s presence in Hyderabad has increased to 15 million sft and its total portfolio size has scaled up from 34.8 million sft to 36.6 million sft. Moreover, the committed occupancy of its total office portfolio has increased from 91.5 per cent to 92 per cent.
Mindspace Business Parks REIT, listed on the Indian bourses in August 2020, owns office portfolios in the Mumbai Region, Pune, Hyderabad, and Chennai.
