Mindspace Business Parks Real Estate Investment Trust (REIT) has acquired Q-City, a 0.81-msf or million square feet office asset in Hyderabad’s Financial District, valued at approximately Rs 512 crore.
The asset, spread across 6 acres, has been acquired through Horizonview Properties Private Limited, an asset special purpose vehicle (SPV) of Mindspace REIT. The property will be rebranded as The Square, 110 Financial District, the company said in a release.
This move takes Mindspace REIT’s total Hyderabad portfolio to over 16 msf. “We have just closed our first large external acquisition, a decisive milestone in Mindspace REIT’s growth journey. The campus, located in the Financial District, further strengthens our foothold in Hyderabad,” said Ramesh Nair, CEO and managing director of Mindspace Business Parks REIT.
The acquisition was completed at an 11.6 percent discount to an independent valuation, with an implied capitalisation rate of 9.9 percent. The gross acquisition price stands at Rs 496 crore, implying a capital value of Rs 6,130 per square foot. The transaction was funded through debt.
According to the company, the asset currently has an occupancy of around 65 percent and is expected to benefit from Mindspace REIT’s tenant network to lease out the remaining space faster.
“As Madhapur and HITEC City approach capacity, global occupiers are migrating westward in the city, and our acquisition positions us to capture this demand,” Nair said.
Madhapur is an IT-heavy area within Hyderabad, and encompasses HITEC City.
Following this acquisition, Mindspace REIT’s overall portfolio will grow from 37.1 million square feet to 37.9 million square feet. Its gross asset value will increase from around Rs 36,647 crore to Rs 37,143 crore.
Hyderabad has become a significant hub for global capability centres, and now hosts over 350 such entities, supported by a robust tech and BFSI or banking, financial services and insurance talent ecosystem.
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