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Mindspace Business Parks REIT has acquired a 2.6 million sq ft commercial office asset in Chennai for INR 2,541 crore through the purchase of 100% stake in Sycamore Properties Pvt Ltd and Content Properties Pvt Ltd. The transaction, approved in the past week, includes 1.4 million sq ft of completed space and 1.2 million sq ft under construction, expected to be delivered by March next year. The acquisition is part of a right of first offer (ROFO) arrangement with sponsor K Raheja Corp and marks the fifth asset addition from its pipeline. The REIT also plans a preferential unit issue of up to INR 675 crore to fund the deal, subject to regulatory and unitholder approvals.
Mindspace Business Parks REIT has acquired a 2.6 million sq ft commercial office asset in Chennai for INR 2,541 crore, through the purchase of 100% equity stake in Sycamore Properties Pvt Ltd and Content Properties Pvt Ltd, with the transaction approved in the past week as part of its portfolio expansion strategy amid sustained demand for Grade A office space. Advertisement
The acquisition comprises an office development with a total leasable area of approximately 2.6 million sq ft. Of this, around 1.4 million sq ft is already completed and operational, while the remaining 1.2 million sq ft is under construction and is expected to be delivered by March next year. The phased nature of the asset provides a mix of immediate income-generating space and near-term development potential.
The transaction has been executed under a right of first offer (ROFO) agreement with the REIT's sponsor, K Raheja Corp, and represents the fifth acquisition from the sponsor pipeline. Such arrangements enable the REIT to access a steady supply of assets while maintaining alignment with its sponsor's development portfolio.
The board of the REIT's manager has approved the acquisition along with a proposal to raise up to INR 675 crore through a preferential issue of units. The units are proposed to be issued at a price of INR 484.89 per unit, subject to approvals from unitholders and regulatory authorities. The capital raise is intended to partly fund the acquisition while maintaining the REIT's capital structure.
A senior executive at the REIT indicated that the addition of the Chennai asset strengthens its presence in a key office market and enhances its ability to capture leasing demand and rental growth over the long term. The city has emerged as an important office destination, particularly for technology and services sectors, contributing to sustained absorption levels.
Mindspace REIT, which was listed in August 2020, owns a portfolio of office assets across major markets including the Mumbai region, Pune, Hyderabad, and Chennai. Following the acquisition, the REIT's total portfolio spans approximately 39 million sq ft of leasable area, comprising 31.9 million sq ft of completed assets, 3.6 million sq ft under construction, and 3.5 million sq ft of future development potential.
The expansion in Chennai aligns with the REIT's strategy of strengthening its presence in established office markets with strong tenant demand and infrastructure support. The addition of both completed and under-construction space allows for a balanced growth approach, combining stable rental income with development-led upside.
The acquisition reflects continued institutional activity in India's office real estate segment, where REIT platforms are scaling portfolios through a combination of sponsor-led pipelines and market transactions.
Source - PTI
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