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Last Updated : Aug 07, 2020 11:33 AM IST | Source: Moneycontrol.com

Mindspace REIT lists at 11% premium on issue price of Rs 275

This is the second REIT listing on the exchanges, after Embassy Office Parks REIT which was listed in March 2019 following fund raising of Rs 4,750 crore via IPO.

 
 
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K Raheja Corp and Blackstone-backed Mindspace Business Parks REIT listed with a 10.55 percent premium over its issue price of Rs 275, at Rs 304 on BSE on August 7.

The stock was trading at Rs 304 on the BSE, up 10.55 percent over issue price, with volumes of 13.99 lakh units at 11:31 hours IST.

On the National Stock Exchange, it traded with volumes of 1.85 crore units, rising 10.48 percent to Rs 303.83.

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Mindspace Business Parks REIT public issue had received a good response from institutional as well as non-institutional investors.

This is the second REIT listing on the exchanges, after Embassy Office Parks REIT which was listed in March 2019 following fundraising of Rs 4,750 crore via IPO.

The public issue of Rs 4,500-crore by Mindspace Business Parks REIT IPO consisted a fresh issue of Rs 1,000 crore and offer for sale of Rs 3,500 crore, which was subscribed 13 times during July 27-29, 2020.

Sharad Mittal, CEO at Motilal Oswal Real Estate Fund feels from Mindspace, investors can earn a return of 11-12 percent of which 7-8 percent which accrues from rental yield is as stable as debt. "Combining the stability of debt and upside of equity, REITs are a must-have in any investor portfolio."

Mindspace REIT is the owner of a high-quality office portfolio in four key markets in India — Mumbai, Hyderabad, Pune and Chennai - that serves as essential corporate infrastructure to multinational tenants and has significant embedded growth prospects. Mindspace portfolio consists of five integrated business parks with superior infrastructure and amenities and five quality independent offices aggregating to 29.5 million square feet of total leasable area.

Its portfolio assets are well diversified across 172 tenants with no single tenant contributing more than 7.7 percent of the Gross Contracted Rentals. Approximately 84.9 percent of the Gross Contracted Rentals were derived from leading multinational corporations and approximately 39.4 percent from Fortune 500 companies (as on March 31, 2020).

Mindspace has a high-quality tenant base with 92.0 percent Committed Occupancy along with long-term contracted rentals which provide long-term visibility of revenue.
First Published on Aug 7, 2020 10:22 am
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