Mindspace REIT to acquire Chennai office assets for ₹2,541 crore

Acquisition of two Chennai office assets from sponsor portfolio to strengthen Mindspace REIT's presence and expand leasable portfolio and asset base

Mindspace Business Parks REIT (real estate investment trust) on Tuesday announced the acquisition of 100 per cent equity shareholding in two office assets in Chennai for a combined enterprise value of about Rs 2,541 crore through related-party transactions.

 

The REIT will acquire Sycamore Properties Private Limited and Content Properties Private Limited, which together own 2.6 million sq ft at Commerzone Pallikaranai on Pallavaram–Thoraipakkam Road (PTR). The management’s board also approved a preferential issue of units of up to Rs 675 crore.

 

The acquisition is part of the Right of First Offer (ROFO) pipeline from sponsor K Raheja Corp and marks the fifth asset purchase from the sponsor portfolio. The transaction value represents a 3.4 per cent discount to the average of two independent valuations. Units will be issued at Rs 484.89 apiece, compared with the closing market price of Rs 449 on March 31.

 

 

Commerzone Pallikaranai is a 12.4-acre Grade A office campus with 1.4 million square feet (msf) of completed space across two blocks and 1.2 msf under construction, expected to be delivered by March 2027.

 

Following the acquisition, Mindspace’s leasable portfolio will increase to about 41.6 msf from 39 msf (September 2025), while gross asset value (GAV) will rise to Rs 46,760 crore from Rs 44,130 crore. The loan-to-value ratio will increase marginally to 28 per cent from 25.6 per cent.

 

Ramesh Nair, managing director and chief executive officer, Mindspace REIT, said, “The acquisition of Commerzone Pallikaranai is a strategic addition to our portfolio and meaningfully strengthens our presence in Chennai, one of India’s most resilient and high-growth office markets, with the lowest vacancy. This high-quality campus offers institutional-grade infrastructure, a strong multinational tenant base and long lease tenures, along with embedded net operating income growth potential from its under-construction area. With PTR already established as one of Chennai’s major office corridors, where demand continues to outpace supply, this acquisition positions us strongly to capture future leasing demand, rental upside, and long-term value creation for our unitholders.”