Mindspace Business Parks REIT acquired an 18.2 lakh sq ft commercial space in Hyderabad for ₹613 crore to strengthen its rent-generating portfolio. As part of the deal, the listed REIT will fully own Sustain Properties Pvt Ltd, which holds the commercial space. In exchange, Sustain Properties’ shareholders will receive units in Mindspace REIT as compensation.
In a regulatory filing, Mindspace REIT announced that its board has approved the acquisition of 100% equity shareholding in Sustain Properties, which owns approximately 1.82 million (18.2 lakh) square feet of leasable space at Commerzone Raidurg in Raidurg, Hyderabad.
The value of the transaction is ₹612.9 crore.
As part of the deal, the board has approved issuing up to 16,168,090 units of Mindspace REIT on a preferential basis at ₹379.08 per unit. These units will allow the shareholders of Sustain Properties as compensation for transferring their full equity stake.
Recently, Mindspace REIT reported an 8% rise in its Net Operating Income (NOI), reaching ₹521.8 crore for the quarter ended December 2024, compared to ₹473.1 crore in the same period last year.
The company also announced a distribution of ₹5.32 per unit, totalling ₹315.48 crores for its unitholders.
The distribution includes a dividend of ₹3.20 per unit, totalling ₹189.76 crores, the interest of ₹0.22 per unit amounting to ₹13.04 crore, repayment of SPV debt of ₹1.88 per unit aggregating ₹111.48 crores, and other income of ₹0.02 per unit, totalling ₹1.18 crore.
For the December quarter of the 2024-25 fiscal, the company announced an 11% higher distribution than last year.
Mindspace Business Parks REIT, backed by the K Raheja Corp group, was listed on Indian stock exchanges in August 2020. The company owns office assets across the Mumbai Region, Pune, Hyderabad, and Chennai.
By the end of the third quarter, Mindspace REIT’s portfolio spanned 34.8 million (348 lakh) square feet, including 26.8 million square feet of completed space, 4.6 million square feet under construction, and 3.4 million square feet earmarked for future development.