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Mindspace Business Parks REIT has acquired a 51% stake in a Chennai-based commercial asset for around INR 1,500 crore, valuing the property at approximately INR 3,000 crore. The investment involves Radial IT Park Pvt Ltd, which owns a 2.6 million sq ft office development in the city. The remaining 49% stake will be acquired by 360 One Real Assets Advantage Fund and its affiliates. The seller is a subsidiary of CapitaLand Investment. The acquisition forms part of Mindspace REIT's portfolio expansion strategy and strengthens its presence in Chennai's office market. The asset is positioned within a key commercial corridor and is backed by long-term leases and established occupiers.
Mindspace Business Parks REIT has entered into definitive agreements to acquire a 51% stake in Radial IT Park Pvt Ltd, which owns a commercial office asset in Chennai, for an estimated consideration of around INR 1,500 crore, as part of its portfolio expansion strategy. The transaction values the asset at an enterprise value of approximately INR 3,000 crore and was disclosed in a regulatory filing in the past week. Advertisement
The acquisition pertains to a 2.6 million sq ft office development located in Chennai, adding to the REIT's existing presence in key office markets across India. The remaining 49% stake in Radial IT Park Pvt Ltd will be acquired by 360 One Real Assets Advantage Fund, along with its affiliates, indicating a co-investment structure for the transaction.
The seller, AIGP2 Chennai 1 Pte Ltd, is a wholly owned subsidiary of CapitaLand India Growth Fund 2, which is managed by CapitaLand Investment. The fund focuses on developing Grade A business parks in prime locations across India's major cities.
According to Ramesh Nair, the acquired asset aligns with the REIT's strategy of adding institutional-quality office properties with stable income profiles. He indicated that the campus is located in a high-growth corridor, features low-carbon infrastructure, and is anchored by established tenants with long-term lease commitments, providing visibility on future income streams.
The acquisition is expected to strengthen Mindspace REIT's position in the Chennai office market, positioning it among the larger owners of commercial office assets in the city. Chennai continues to be a key office market driven by demand from technology and corporate occupiers, particularly in established business districts.
Mindspace Business Parks REIT, sponsored by the K Raheja Corp group, has been expanding its portfolio through a mix of acquisitions and development. Since its listing in 2020, the REIT has built a diversified portfolio across major office markets including the Mumbai Metropolitan Region, Pune, Hyderabad, and Chennai.
The REIT's current portfolio comprises a total leasable area of approximately 39 million sq ft. This includes around 31.9 million sq ft of completed properties, 3.6 million sq ft under construction, and an additional 3.5 million sq ft earmarked for future development.
The Chennai acquisition adds scale to its southern India portfolio and reflects continued institutional interest in Grade A office assets with stable occupancy and long-term lease visibility. The transaction also highlights ongoing capital deployment by REITs and investment funds in income-generating commercial real estate assets across key urban markets.
Source - PTI
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