Mindspace REIT acquires 3 office spaces in Mumbai, Pune for Rs 2,916 crore

Mindspace Business Parks REIT, a real estate investment trust, on Friday announced the acquisition of three prime commercial properties for Rs 2,916 crore from K Raheja Corp, as part of its strategy to expand its portfolio.

Mindspace REIT, sponsored by realty firm K Raheja Corp, has bought these three assets, comprising 8 lakh square feet area, in Mumbai and Pune.

As of September 30, the company had a portfolio of 38.2 million square feet of commercial space, and after this acquisition, it will increase to 39 million square feet.

In a regulatory filing on Friday, the company said it has acquired three prime CBD (central business district) assets for Rs 2,916 crore from K Raheja Corp.

The Board of the Manager to Mindspace Business Parks REIT has approved the acquisition and preferential issue of units aggregating up to Rs 1,820 crore, subject to unitholders and other regulatory approvals.

Elaborating on the acquisition, Mindspace REIT said it has acquired Pramaan Properties Pvt Ltd, which owns 0.45 million square feet of commercial space at Worli in Mumbai and an office building spread across 0.1 million square feet located in Pune.

It also acquired Sundew Real Estate Pvt Ltd, which owns around 0.2 million square feet of premium office space in Mumbai.

These acquisitions collectively represent around 0.8 million square feet of premium leasable area, valued at a Gross Asset Value (GAV) of Rs 3,106 crore by independent valuers. 'The acquisition will be completed at a Rs 2,916 crore gross acquisition price, representing a 6.1% discount to the average of two independent valuations,' the company said.

Ramesh Nair, MD and CEO of Mindspace REIT, said, '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.' These are high-quality, institutional assets, with strong cash flows, he added.

Mindspace REIT's existing portfolio consists of 5 integrated business parks and 6 independent office assets across the Mumbai region, Pune, Hyderabad and Chennai.