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Mindspace REIT buys commercial asset in Hyderabad for Rs 2,038 crore

Property in city central business district will 'enhance portfolio', says Mindspace

Mindspace Business Parks REIT

Mindspace Business Parks REIT

Prachi Pisal Mumbai

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Mindspace Business Parks real estate investment trust (REIT) has acquired a commercial asset in Hyderabad for Rs 2,038 crore. The price is 7.5 per cent discount to the average of two independent valuations, according to a company statement.
 
The REIT will acquire full equity shareholding in Sustain Properties, which holds a leasable area of 1.82 million square feet (msf) of space at Commerzone Raidurg, a grade-A commercial asset located in Hyderabad’s Madhapur micro market.
 
The acquisition is pursuant to the right of first offer (ROFO) agreement entered into by Mindspace REIT with the sponsors of Sustain Properties.
 
The asset’s leasable area is part of a larger 2.8 msf development. The REIT expects a stable income due to this fully leased asset, as the space is occupied by Qualcomm, a Fortune 500 company, said the statement.
 
 
“Located in Hyderabad’s prime central business district, this Grade A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy,” said Ramesh Nair, chief executive officer of Mindspace REIT.
 
Separately, the REIT's board approved a preferential issue of units aggregating up to Rs 613 crore as consideration for the acquisition of Sustain Properties. These units will be issued at Rs 379.08 per unit to Sustain Properties' shareholders in exchange for their 100 per cent equity shareholding in the asset.
 
The issue and the acquisition are subject to unitholders and other regulatory approvals.
 
With this acquisition, the REIT’s portfolio size will grow from 34.8 msf to 36.6 msf, and the gross asset value (GAV) will increase to Rs 33,550 crore.
 
Recently, the REIT reported an annual increase of 7.5 per cent in its net operating income (NOI) for the first nine months of financial year 2025 (9M FY25) as its NOI stood at around Rs 1,500 crore.
 
The acquisition adds Rs 167 crore to the REIT’s FY25 NOI on a proforma basis, implying a growth of 8.2 per cent.

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First Published: Jan 29 2025 | 1:51 PM IST

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