NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) has acquired 100% equity shareholding in Sustain Properties (Sustain), holding 1.82 million sq ft at Commerzone Raidurg, a grade-A commercial asset situated in Madhapur, Hyderabad.
The commercial asset, which is currently leased to Qualcomm, has been acquired for Rs 2,038 crore. The board of directors of K Raheja Corp Investment Managers, manager to Mindspace REIT, has approved the acquisition and preferential issue of units aggregating up to Rs 613 crore.
This adds Rs 167 crore to the company’s FY25 net operating income (NOI) on a proforma basis; implying a growth of 8.2% of NOI.
This acquisition takes company’s portfolio size in Hyderabad to 15 million sq ft. The asset has a weighted average lease expiry (WALE) of 12 years, which takes Mindspace REIT’s overall average lease from 7.2 years to 7.4 years. It has rentals of Rs 69 per sq ft per month.
Mindspace Business Parks REIT clocked net operating income (NOI) growth of 8.3% year-on-year in Q3 FY25 to Rs 5,218 million. The board declared distribution of Rs 5.32 per unit aggregating to Rs 3,154.86 million.
This acquisition is pursuant to the right of first offer (ROFO) agreement entered by Mindspace REIT with the sponsors.Ramesh Nair, CEO of the company said, “This Grade-A+, fully leased asset enhances our portfolio, boosts income stability, and aligns with our growth strategy.”
Post acquisition, the company’s overall portfolio size will grow from 34.8 million sq ft to 36.6 million sq ft, committed occupancy will increase from 91.5% to 92%, gross asset value (GAV) will increase to Rs 33,550 crore and loan-to-value (LTV) ratio to increase to 25.3%.
